Time management refers to a range of skills, tools, and techniques utilized to accomplish specific tasks, projects and goals. This set encompass a wide scope of activities, and these include planning, setting goals, delegation, analysis of time spent, monitoring, organizing, scheduling, and prioritizing. Initially time management referred to just business or work activities, but eventually the term broadened to include personal activities also. A time management system is a designed combination of processes, tools and techniques. Time management in a broad sense involves both planning and execution. Money can be earned back, however the time once gone is gone. That is what makes time management a really important activity. There is however no agreed and definite way of time management. It depends on the individual person, as how they manage their schedule, and prioritize their activities.
The label "time management" cannot predate the widespread use of the word "management" in our sense at the beginning of the 20th century. Concerns about the wise use of time have a longer history, reflected in the large number of proverbs concerning time and its utilization. Time Management is one of nine knowledge areas identified by the project management body of knowledge, produced by the project management institute. The "Guide to the PMBOK" defines project management as entailing management of scope, cost, time, human resources, risk, etc. Time Management, as a project management subset, is more commonly known as project planning and/or project scheduling.
Many authors offered a categorization scheme for the hundreds of time management approaches that they reviewed:
1. First generation: reminders (based on clocks and watches, but with computer implementation possible) can be used to alert of the time when a task is to be done.
2. Second generation: planning and preparation (based on calendar and appointment books) includes setting goals.
3. Third generation: planning, prioritizing, controlling (using a personal organizer, other paper-based objects, or computer- or PDA-based systems) activities on a daily basis. This approach implies spending some time in clarifying values and priorities.
4. Fourth generation: being efficient and proactive (using any tools above) places goals and roles as the controlling element of the system and favors importance over urgency.
Time management literature paraphrased:
1. "Get Organized" - paperwork and task triage
2. "Protect Your Time" - insulate, isolate, delegate
3. " set gravitational goals - that attract actions automatically
4. "Achieve through Goal Focus" - motivational emphasis
5. "Work in Priority Order" - set goals and prioritize
6. "Use Magical Tools to Get More Out of Your Time" - depends on when written
7. "Master the Skills of Time Management"
8. "Go with the Flow" - natural rhythms, Eastern philosophy
9. "Recover from Bad Time Habits" - recovery from psychological problems underlying, e.g. procrastination
Asia-Pacific Economic Cooperation (APEC) is a forum for 21 Pacific Rim countries or regions to discuss the regional economy, cooperation, trade and investment. The activities, including year-round meetings of the members' ministers, are coordinated by the APEC Secretariat. The organization conducts the APEC Economic Leaders' Meeting, an annual summit attended by the heads of government of all APEC members which is represented under the name Chinese Taipei by a ministerial-level official at the behest of the People's Republic of China (PRC). In January 1989, Australian Prime Minister Bob Hawke called for more effective economic cooperation across the Pacific Rim region. This led to the first meeting of APEC in the Australian capital Canberra in November, chaired by Australian Foreign Affairs Minister Gareth Evans. Attended by political ministers from twelve countries, the meeting concluded with commitments for future annual meetings in Singapore and South Korea. The initial proposal was opposed by countries of the Association of Southeast Asian Nations (ASEAN) which instead proposed the East Asia Economic Caucus which would exclude non-Asian countries such as the United States, Canada, Australia and New Zealand. The plan was opposed and strongly criticized by Japan and the United States.
The first APEC Economic Leaders' Meeting occurred in 1993 when US president Bill Clinton, after discussions with Australian prime minister Paul Keating, invited the heads of government from member economies to a summit on Blake Island. At the summit, some leaders called for continued reduction of barriers to trade and investment, envisioning a community in the Asia-Pacific region that might promote prosperity through cooperation. The APEC Secretariat, based in Singapore, was established to coordinate the activities of the organization.
Member economy Date of accession
Republic of Korea 1989
New Zealand 1989
United States 1989
Republic of China 1991
Hong Kong, China 1991
Papua New Guinea 1993
India has requested membership in APEC, and received initial support from the United States, Japan and Australia. In addition to India, Mongolia, Pakistan, Laos, Bangladesh, Colombia, Ecuador, are among a dozen countries seeking membership in APEC by 2008. Colombia applied for APEC's membership as early as in 1995, but its bid was halted as the organization stopped accepting new members from 1993 to 1996, and the moratorium was further prolonged to 2007 due to the 1997 Asian Financial Crisis. Guam has also been actively seeking a separate membership, citing the example of Hong Kong, but the request is opposed by the United States, which currently represents Guam.
Source: wikipedia, Posted after editing
Economic growth is the increase in the amount of the goods and services produced by an economy over time. It is conventionally measured as the percent rate of increase in real gross domestic product, or real GDP. Growth is usually calculated in real terms, i.e. inflation-adjusted terms, in order to net out the effect of inflation on the price of the goods and services produced. In economics, "economic growth" or "economic growth theory" typically refers to growth of potential output, i.e., production at "full employment," which is caused by growth in aggregate demand or observed output.As an area of study, economic growth is generally distinguished from development economics. The former is primarily the study of how countries can advance their economies. The latter is the study of the economic aspects of the development process in low-income countries.
Origins of the concept and theories of economic growth
In 1377, the Arabian economic thinker Ibn Khaldun provided one of the earliest descriptions of economic growth in his famous Muqaddimah (known as Prolegomena in the Western world):
"When civilization [population] increases, the available labor again increases. In turn, luxury again increases in correspondence with the increasing profit, and the customs and needs of luxury increase. Crafts are created to obtain luxury products. The value realized from them increases, and, as a result, profits are again multiplied in the town. Production there is thriving even more than before. And so it goes with the second and third increase. All the additional labor serves luxury and wealth, in contrast to the original labor that served the necessity of life.
Now it is generally recognized that economic growth also corresponds to a process of continual rapid replacement and reorganization of human activities facilitated by investment motivated to maximize returns. This exponential evolution of our self-organized life-support and cultural systems is remarkably creative and flexible, but highly unpredictable in many ways. Since science still has no good way of modeling complex self-organizing systems, various efforts to model the long term evolution of economies have produced few useful results.
Classical growth theory
Creative destruction and economic growth
Many economists view entrepreneurship as having a major influence on a society's rate of technological progress and thus economic growth. Joseph Schumpeter was a key figure in understanding the influence of entrepreneurs on technological progress. In Schumpeter's Capitalism, Socialism and Democracy, published in 1942, an entrepreneur is a person who is willing and able to convert a new idea or invention into a successful innovation. Entrepreneurship forces "creative destruction" across markets and industries, simultaneously creating new products and business models. In this way, creative destruction is largely responsible for the dynamism of industries and long-run economic growth. Former Federal Reserve chairman Alan Greenspan has described the influence of creative destruction on economic growth as follows: "Capitalism expands wealth primarily through creative destruction—the process by which the cash flow from obsolescent, low-return capital is invested in high-return, cutting-edge technologies."
New growth theory
Growth theory advanced again with the theories of economist Paul Romer in the late 1980s and early 1990s. Other important new growth theorists include Robert E. Lucas and Robert J. Barro.Unsatisfied with Solow's explanation, economists worked to "endogenize" technology in the 1980s. They developed the endogenous growth theory that includes a mathematical explanation of technological advancement. This model also incorporated a new concept of human capital, the skills and knowledge that make workers productive. Unlike physical capital, human capital has increasing rates of return. Therefore, overall there are constant returns to capital, and economies never reach a steady state. Growth does not slow as capital accumulates, but the rate of growth depends on the types of capital a country invests in. Research done in this area has focused on what increases human capital or technological change.
John Maynard Keynes said in 1927. “We will not have any crashes in our time.” Dr Irving Fisher, another distinguished economist, said on October 17, 1929. “Stock prices have reached what looks like a permanently high plateau.” US Treasury Secretary and Harvard Economic Society, among others, publicly shared their confidence.
They were reflecting on the state of the economy that was booming. It was a time when drivers and window cleaners eves-dropped on the conversations of their patrons to collect tips on shares. The DJ Index doubled from little less than 200 when Keynes made his prediction to almost 400 when Dr Fisher announced the high plateau of the state of the market. Within two weeks of Dr Fisher’s forecast, it had crashed by over 40% to reach 200 again. All those who had invested their savings from 1927 to 1929 were impoverished overnight. Several of them committed suicide. By 1933, the DJ Index lost 90% of its value from the day of Dr Fisher’s ‘high plateau’ proclamation to reach 40. Industrial production declined by two-thirds. The prices of farm land collapsed to nothing. The United States imposed high trade barriers, inviting retaliation by 25 other countries. Since Europe was dependent on exports to pay its World War I debts and Japan to be able to import the most basic necessities of life, high trade barriers devastated their economies. The Germans elected Hitler, a failed artist, to lead them. In Japan, too, nationalist extremism grew at a fast pace. The World War II followed from 1939 to 1945.
Why should one recall those dreadful days when the US economy has been growing at 3.5-4% almost since the beginning of this decade? Moreover aren’t these boom times in Asia, with China and India growing at 9%? Finally Germany and Japan are also on the recovery path. There is a big party going on. The bars of Pudong, Ginza and Colaba are packed with young people high on martinis. Housemaids in Asia and taxi drivers in Europe and North America can be seen soliciting stock market tips from their patrons. Housing prices are moving up, up and up. If Dr Fisher were alive, he would proclaim this time that the stock markets all over the world have not yet reached their plateau. There are miles to climb before they reach their peak.
The problem is that much of US recovery is made possible by high consumer spending, financed by debt, except in Q2 of 2007 when exports contributed significantly to growth. The US public debt has increased from $5.5 trillion at the time of President Bush’s first election to $9 trillion now and perhaps $10-11 trillion by the time he leaves. The US currency has been depreciated by 0.9 at the end of 2000 to almost 1.40 by the end of 2007 against Euro. If the US current account balance and external debt continue to expand, at some stage the fall of dollar, rise in interest rates and recession may prove to be difficult to avoid. The critical question is if the dollar will fall below 1.5 against Euro, and if it does, at what rate of dollar the creditors will press the panic button.
However, if the new President gets too trapped in a war to sort the economy out, the dollar can collapse in an unpredictable and violent manner. As most central banks have two third of their foreign exchange reserves in dollars– and the Chinese have already lost $300 billion for this sin – they will have no option but to switch from dollar holdings to other currencies or gold. This will create a run on the dollar, forcing individuals around the world with dollar holdings to lose their savings, leaving Federal Reserve with no option but to hike interest rates, inviting collapse of thousands of banks and recession in the United States. The failure of Doha talks is a clear indication that a strong recession in the United States (with reduction in demand for Chinese and European exports) will lead to a trade war. China’s fragile banking system may come under pressure, creating a spate of bankruptcies in that country. At such a time, if the leaders of Iran, Russia, and Venezuela decide not to quote oil contracts in dollars, there will be a complete collapse of the American economy also causing a severe damage to European and Asian economies.
Will the world economy collapse? The rational economic answer is – unlikely but not impossible. However, politics can be irrational and therein lays the danger. There is no consensus among economists about why the crash of 1927 took place. So, we may not have strong economic lessons to learn from that experience. However, lessons from politics that preceded and followed the crash are clear. If we want to avert a crash in the next decade or half, which can have several times more horrendous consequences than the one in the last century, we will need to get both our politics and economics right.
Author : Sundeep Waslekar
George Elton Mayo (26 December 1880 - 7 September 1949) was an Australian psychologist, sociologist and organization theorist.
He lectured at the University of Queensland from 1919 to 1923 before moving to the University of Pennsylvania, but spent most of his career at Harvard Business School (1926 - 1947), where he was professor of industrial research. On 18 April 1913 he married Dorothea McConnel in Brisbane. They had two daughters.
Mayo is known as the founder of the Human Relations Movement, and is known for his research including the Hawthorne Studies, and his book The Human Problems of an Industrialized Civilization (1933). The research he conducted under the Hawthorne Studies of the 1930s showed the importance of groups in affecting the behavior of individuals at work. However it was not Mayo who conducted the practical experiments but his employees Roethlisberger and Dickinson. This enabled him to make certain deductions about how managers should behave. He carried out a number of investigations to look at ways of improving productivity, for example changing lighting conditions in the workplace. What he found however was that work satisfaction depended to a large extent on the informal social pattern of the work group. Where norms of cooperation and higher output were established because of a feeling of importance. Physical conditions or financial incentives had little motivational value. People will form work groups and this can be used by management to benefit the organization. He concluded that people's work performance is dependent on both social issues and job content. He suggested a tension between workers' 'logic of sentiment' and managers' 'logic of cost and efficiency' which could lead to conflict within organizations.
Disagreement regarding his employees' procedure while conducting the studies:
• The members of the groups whose behavior has been studied were allowed to choose themselves.
• Two women have been replaced since they were chatting during their work. They were later identified as members of a leftist movement.
• One Italian member was working above average since she had to care for her family alone. Thus she affected the group's performance in an above average way.
Summary of Mayo's Beliefs:
• Individual workers cannot be treated in isolation, but must be seen as members of a group.
• Monetary incentives and good working condition are less important to the individual than the need to belong to a group.
• Informal or unofficial groups formed at work have a strong influence on the behavior of those workers in a group.
• Managers must be aware of these 'social needs' and cater for them to ensure that employees collaborate with the official organization rather than work against it.
Criticism of Mayo:
Mayo's contributions to management thought have come increasingly under fire. The celebrated sociologist Daniel Bell criticized Mayo and other industrial sociologists for "adjusting men to machines," rather than with enlarging human capacity or freedom. James Hoopes criticized Mayo in 2003 for "substituting therapy for democracy."
Source : wikipedia
1. MANUFACTURING INDUSTRIAL ENTERPRISE
Transportation management is a activity that executed by transportation or unit in organizational industrial or trade service to moves or transport passenger. Management of a operated goods transportation at one particular manufacturing industry, constituting line accountability because corporate main target that is up to gain of effort satisfy its customer.
In a general way, transportation management faces three main tasks which is:
1. Arranging plan and program to reach to the effect and organization mission all.
2. Increasing productivity and firm performance.
3. Social’s impact and social's accountability to operated transportation.
Transportation management function in industrial manufacturing in a general way is:
1. Plotting, managing and coordinating and administration all kind transportation at exhaustive corporate until gets most management as efficient as maybe good for goods and also passenger transportation to fire an employee.
2. Establishing net-operating cost default, staff's collation and another supporter services.
3. Determining vehicle which match the most for all firm requirement with regard price and economic benefit.
4. Secure that care default, preserve, fixed up. And schedule is abode by so firm vehicle always in condition effective is seen from mechanical repair facet it.
In manufacturing industry also available duty assignment which shall be done by transportation management for example:
1. providing vehicle to transport industrial result goods to consumer or customer
2. nurse and fixing all vehicle
3. restraining spares part tribal buy, fuel, and oil
transportation management objectives in industrial is give intern's service that satisfy customer and cost that visually been charged against customer is fairly or not laid it on thick. Of explanation upon, target in a manufacturing business gets to be divided:
1. up to efficient tall operational
2. up to care default
3. up to organizes healthy
type and organization chart in logistic transportation usually subtracted prepared with every consideration and often been arranged problem regardless that will be faced so organization itself responsible reducing because transportation part worked by the other parts.
2. TRANSPORTATION COMPANY
To render 4 service product functions transportations (safe, order and apple-pie order, cozy, economic), transportation management function for corporate transportation in a general way is:
1. plotting capacity and fleet amount
2. plotting route network, pass by, route and vehicle departure schedule
3. managing performing operate for fleet and vehicle body
4. pet and fix fleet
5. Plot and restraining financially etc..
Target and task that shall be reached deep company transportation to render transportation product function is:
1. securing safe transportation and secures passenger safety.
2. securing transportation operation that order and apple-pie order
3. up to efficiency transportation operations.
Management consciousness (Risk Management) on firms at Indonesian still bottommost, it can be seen from its minim implementation to prevent jeopardy well of financials facet and also of nonfinancial facet to faced business risk by corporate that. Its low is this consciousness makes a lot of firm become bankrupt or experience another problems without detected earlier. Variably in comparison with banking sector that is assessed highest deep apply its management principle because tights specified order it by Indonesia Bank. A variety business risk which faced by firms at Indonesian among those is financial factor and factor non finance. Evident jeopardy management practice can detect happening gaffe deep corporate more early. It can be modeled as follows:
1. factor financially: accounting Value At Risk (VaR) namely disadvantaged potency extrapolation for certain period.
2. factor non finance: car producer that rise descent of armor price.
Kinds of risk management are:
1. Speculative risk
That have deviation possible advantage and adverse possible deviation. Let say an entrepreneur in do stock buy a firm really expect stock markup that they buys to get will gain of that stock, but in such event just exists two possible, which is among benefits or loss.
2. Pure risk
risk that just has possible to experience loss. Its example: a. personal jeopardy
b. asset jeopardy
c. jeopardy carries the ball.
1. Finance risk factor which is jeopardy which can regard finance situation a firm. potency's example is faced corporate on a given time period.
2. Nonfinance risk factor which is jeopardy that doesn’t in direct correlations to corporate finance. Its example: its rise is plane fuel cost for airline what do get to trouble plane operational.
TRICK SETTLES RISK
In settle jeopardy who will be faced prima facie which shall be done by firms in particular those are on Indonesians which is with increase that consciousness momentous jeopardy management for continuity of company itself to be able to prevents to arise greater risk it again that will impacted on that firm. Necessary too system good risk management so if will happen a jeopardy can more detect early and gets to be avoided. Management principles can also be applied to build system risk management with every consideration.
To settle risk factor financial one of the ways it is as have already be named deep article which is by undertaking disadvantaged potency extrapolation for certain period. With marks sense this loss extrapolation is expected corporate not get greater loss for period is succeeding.
To settle risk factor non finance which can be done is firm have brooding and paying attention things which will happen deep corporate that one will impacted on directness company itself. Its example as is hard to get armor raw material, its rise is armor raw material price that needed for assembler firm production car. For airline, as rise its fuel cost, availability of labour which is equal to, flight path security etc..
Therefore indispensable absolute risk management by firms at Indonesian as what already been applied with every consideration by sector banking so that jeopardy gets to be avoided or in any case gets at reduces.
Money is an invention of the human mind. The creation of money is made possible because human beings have the capacity to accord value to symbols. Money is a symbol that represents the value of goods and services. The acceptance of any object as money – be it wampum, a gold coin, a paper currency note or a digital bank account balance – involves the consent of both the individual user and the community. Thus, all money has a psychological and a social as well as an economic dimension. As human society has evolved, the nature and function of money has evolved too. While a history of money may trace the origin and usage of different forms of money at different times and in different parts of the world, an evolutionary perspective on money traces the social and psychological changes in human attitude and collective behavior that made possible this historical development.
Before the invention of money, barter was the primary medium of exchange. An individual possessing a material object of value, such as a measure of grain, could directly exchange that object for another object perceived to have equivalent value, such as a small animal, a clay pot or a tool. The capacity to carry out transactions was severely limited since it depended on a coincidence of wants. The seller of food grain had to find a buyer who wanted to buy grain and who also could offer in return something the seller wanted to buy. There was no common medium of exchange into which both seller and buyer could convert their tradable commodities. There was no standard which could be applied to measure the relative value of various goods and services.
The first stage in the evolution of money was the acceptance of certain inherently valuable objects, such as metals, cows, goats or food grains, as a common standard of measure and unit of exchange. It was relatively easy for people to accept any of these as money because they had inherent use value for every individual and, therefore, their wide acceptance by other people was assured. All metals were accepted because they could be readily converted into precious tools and weapons, e.g. knives, axes, spears and spades. Gold and silver had secondary advantages. They were also easy to identify and visually attractive. Gold, silver, copper as well as other usable material objects such as salt and peppercorns are categorized as commodity money, since they combine the attributes both of a usable commodity and a symbol. People accepted foods and metals as money because they were sure of their value to themselves and to other people.
The introduction of metal coins marked a step or bridge in the evolution from usable commodities to symbolic forms of money. Although metal had a use value of its own, coins were accepted in trade for their symbolic value as a medium and standard measure for exchanging other goods and services of value rather than for utilization of the metal they contained.
Warehouse receipts became a very successful form of representative money in ancient Egypt during the reign of the Ptolemies around 330 BC. Farmers deposited their surplus food grains for safe-keeping in royal or private warehouses and received in exchange written receipts for specific quantities of grain. The receipts were backed and redeemable for a usable commodity. Being much easier to carry, store and exchange than bags of grain, they were accepted in trade as a secure and more convenient form of payment, acting as a symbolic substitute for the quantities of food grain they represented. The warehouse receipt itself had no inherent value. It was only a symbol for something of value.
More importantly but less obviously, the introduction of banking by the pharaohs made possible the creation of money. Until then new money could be grown as a crop, raised as an animal or discovered as metal in the earth. Now it could be created by writing a warehouse receipt. At first these receipts were issued only when additional grain was deposited and cancelled whenever the grain was withdrawn from the warehouse. But it required only a small step in imagination for the bankers to realize that they could also create new grain receipts on other occasions. If someone applied to the bank for financial assistance, the bank did not need to provide it in the form of grain. It could simply create and give to the borrower a new warehouse receipt that was indistinguishable from those issued when grain was deposited. Although the new receipts were not backed by additional deposits of grain, they were still backed by the total value of grain on deposit at the warehouse and, therefore, readily accepted in the market as a medium of exchange, so long as the public had trust and confidence in the overall financial strength of the grain bank.
This stage marks a crucial transition from money as a thing to money as a symbol of trust. In the case of commodity money, trust was placed in the inherent value of the metal or grain which constituted the form of payment. In the case of the warehouse receipt, trust was extended from the commodity to the social organization that held the grain and issued the receipts. This shift required a psychological willingness on the part of the individual to accept a symbol in place of a physical object and a social willingness on the part of the collective to evolve organizations and systems of account that could gain and hold the public trust.
Trade Bills of Exchange
Bills of exchange became prevalent with the expansion of European trade toward the end of the Middle Ages. A flourishing Italian wholesale trade in cloth, woolen clothing, wine, tin and other commodities was heavily dependent on credit for its rapid expansion. Goods were supplied to a buyer against a bill of exchange, which constituted the buyer’s promise to make payment at some specified future date. Provided that the buyer was reputable or the bill was endorsed by a credible guarantor, the seller could then present the bill to a merchant banker and redeem it in money at a discounted value before it actually became due. These bills could also be used as a form of payment by the seller to make additional purchases from his own suppliers. Thus, the bills – an early form of credit – became both a medium of exchange and a medium for storage of value. Like the loans made by the Egyptian grain banks, this trade credit became a significant source for the creation of new money. In England, bills of exchange became an important form of credit and money during last quarter of the 18th century and the first quarter of the 19th century before banknotes, checks and cash credit lines were widely available.
Knowing that goldsmiths were laden with gold, it was only natural that other traders in need of capital might approach them for loans, which the goldsmiths made to trustworthy parties out of their gold hoards in exchange for interest. Like the grain bankers, goldsmith began issuing loans by creating additional paper gold receipts that were generally accepted in trade and were indistinguishable from the receipts issued to parties that deposited gold. Both represented a promise to redeem the receipt in exchange for a certain amount of metal. Since no one other than the goldsmith knew how much gold he held in store and how much was the value of his receipts held by the public, he was able to issue receipts for greater value than the gold he held. Gold deposits were relatively stable, often remaining with the goldsmith for years on end, so there was little risk of default so long as public trust in the goldsmith’s integrity and financial soundness was maintained. Thus, the goldsmiths of London became the forerunners of British banking and prominent creators of new money. They created money based on public trust.
The history of money and banking are inseparably interlinked. The multiplication of money really took off when banks got into the business. Inspired by the success of the London goldsmiths, some of which became the forerunners of great English banks, banks began issuing paper notes quite properly termed ‘banknotes’ which circulated in the same way that government issued currency circulates today. In England this practice continued up to 1694. Scottish banks continued issuing notes until 1850. In USA, this practice continued through the 19th Century, where at one time there were more than 5000 different types of bank notes issued by various commercial banks in America. Only the notes issued by the largest, most creditworthy banks were widely accepted. The script of smaller, lesser known institutions circulated locally. Farther from home it was only accepted at a discounted rate, if it was accepted at all. The proliferation of types of money went hand in hand with a multiplication in the number of financial institutions.
These banknotes were a form of representative money which could be converted into gold or silver by application at the bank. Since banks issued notes far in excess of the gold and silver they kept on deposit, sudden loss of public confidence in a bank could precipitate mass redemption of banknotes and result in ‘’bankrupcy"
The primary business of the grain and goldsmith bankers was safe storage of savings. The primary business of the early merchant banks was promotion of trade. The new class of commercial banks made accepting deposits and issuing loans their principal activity. They lend the money they received on deposit. They created additional money in the form of new bank notes. They also created additional money in the form of demand deposits simply by making numerical entries in the ledgers of their account holders. The money they created was partially backed by gold, silver or other assets and partially backed only by public trust in the institutions that created it.
For most of us, the term gold standard is erroneously thought to refer to a time when currency notes were fully backed by and redeemable in an equivalent amount of gold. The British pound was the strongest, most stable currency of the 19th Century and often considered the closest equivalent to pure gold, yet at the height of the gold standard there was only sufficient gold in the British treasury to redeem a small fraction of the currency then in circulation. In 1880, US government gold stock was equivalent in value to only 16% of currency and demand deposits in commercial banks. By 1970, it was about 0.5%. The gold standard was only a system for exchange of value between national currencies, never an agreement to redeem all paper notes for gold. The classic gold standard prevailed during the period 1880 and 1913 when a core of leading trading nations agreed to adhere to a fixed gold price and continuous convertibility for their currencies. Gold was used to settle accounts between these nations. With the outbreak of World War I, Britain was forced to abandon the gold standard even for their international transactions. Other nations quickly followed suit. After a brief attempt to revive the gold standard during the 1920s, it was finally abandoned by Britain and other leading nations during the Great Depression. Prior to the abolition of the gold standard, the following words were printed on the face of every US dollar: “I promise to pay the bearer on demand, the sum of one dollar” followed by the signature of the US Secretary of the Treasury. Other denominations carried similar pledges proportionate to the face value of each note. The currencies of other nations bore similar promises too. In earlier times this promise signified that a bearer could redeem currency notes for their equivalent value in gold or silver. The US adopted a silver standard in 1785, meaning that the value of the US dollar represented a certain equivalent weight in silver and could be redeemed in silver coins. But even at its inception, the US Government was not required to maintain silver reserves sufficient to redeem all the notes that it issued. Through much of the 20th Century until 1971, the US dollar was ‘backed’ by gold, but from 1934 only foreign holders of the notes could exchange them for metal.
The World Bank said the global economy will enter a recession for the first time since 1982. Equally distressing, international trade will also decline from 2007 levels.
Incredibly, the bank said it now expects global GDP growth to decline to a scant 0.9% in 2009 from 2.5% in 2008. That is a recession for the global economy, as any global growth rate under 2.0% is tantamount to a recession, economist David H. Wang said.
"This is very concerning news, if the World Bank's forecast proves to be accurate," Wang said. "Up to now many forecasts had global growth in the 1.5-2.0% range for 2009. My own estimate was for 1.8-2.0% GDP growth. A GDP rate below 0.9% is a major recession, which will mean higher unemployment, lower corporate revenue, and decreased trade, in most nations."
Further, global trade is expected to decline 2.1% in 2009, the bank said, its first decline since 1982, on reduced global demand and export credits.
The World Bank said the financial crisis has sharply reduced investment, a key pillar that supported the strong GDP growth in emerging markets during the past five years. Tighter credit conditions and reduced appetite for risk will lower investment growth in the developing world to 2.5% in 2009 from 13% in 2008. "That's like going from 60 miles per hour on a highway to driving at about 15 miles per hour, a rate that's way to slow," Wang said. "The global economy is slowing now not just due to decreased demand, but also due to a lack of credit."
GDP growth in developing countries will likely slow to 4.5% in 2009 from 7.9% in 2007, the bank said. Growth in rich countries, which includes many developed economies such as the U.S. and the E.U., will likely be negative in 2009.
Economic Analysis: Along with continued central bank efforts to keep money markets liquid, the above forecast will provide more evidence for the need for fiscal stimulus -- in all major economic regions of the world (U.S., E.U., Asia) -- to fill the void created by cutbacks in business investment and consumer spending. It also speaks to the need for both emerging markets and developed nations to create internal, sustainable, domestic growth engines -- such as renewable energy industries and other 'green' sectors -- as export sales are not likely to play as large a role in GDP growth during the next economic expansion.
The history of money spans thousands of years. Numismatics is the scientific study of money and its history in all its varied forms.
Modern money (and most ancient money) is essentially a token — in other words, an abstraction. Paper currency is perhaps the most common type of physical money today. However, objects of gold or silver present many of money's essential properties. The term Price system is sometimes used to refer to methods using commodity valuation or money accounting systems.
The emergence of money
Shells of the pea-sized sea snail Nassarius kraussianus from Blombos Cave, South Africa, 75,000 B.C. Wear marks indicate the shells were strung as a necklace or bracelet.
The Sumer civilization developed a large scale economy based on commodity money. The Babylonians and their neighboring city states later developed the earliest system of economics as we think of it today, in terms of rules on debt, legal contracts and law codes relating to business practices and private property.
The Code of Hammurabi (Codex Hammurabi), the best preserved ancient law code, was created ca. 1760 BC (middle chronology) in ancient Babylon. It was enacted by the sixth Babylonian king, Hammurabi. Earlier collections of laws include the codex of Ur-Nammu, king of Ur (ca. 2050 BC), the Codex of Eshnunna (ca. 1930 BC) and the codex of Lipit-Ishtar of Isin (ca. 1870 BC). These law codes formalized the role of money in civil society. They set amounts of interest on debt... fines for 'wrong doing'... and compensation in money for various infractions of formalized law.
In cultures where metal working was unknown, shell or ivory jewelry were the most divisible, easily storeable and transportable, scarce, and hard to counterfeit objects that could be made. It is highly unlikely that there were formal markets in 100,000 BCE (any more than there are in recently observed hunter-gatherer cultures). Nevertheless, proto-money would have been useful in reducing the costs of less frequent transactions that were crucial to hunter-gatherer cultures, especially bride purchase, splitting property upon death, tribute, and inter-tribal trade in hunting ground rights (“starvation insurance”) and implements.
Bartering has several problems, most notably the coincidence of wants problem, but even if a farmer growing fruit and a wheat-field farmer need what the other produces a direct barter swap is impossible for seasonal fruit that would spoil before the grain harvest. A solution is to indirectly trade fruit for wheat through a third, "intermediate", commodity: the fruit is exchanged for this when it ripens
Where trade is common, barter systems usually lead quite rapidly to several key goods being imbued with monetary properties. In the early British colony of New South Wales, rum emerged quite soon after settlement as the most monetary of goods. When a nation is without a fiat currency it commonly adopts a foreign fiat currency. In some prisons where conventional money is prohibited, it is quite common for cigarettes to take on a monetary quality, and throughout history, gold has taken on this unofficial monetary function.
From early times, metals, where available, have usually been favored for use as proto-money over such commodities as cattle, cowry shells, or salt, because they are at once durable, portable, and easily divisible. The use of gold as proto-money has been traced back to the fourth millennium B.C. when the Egyptians used gold bars of a set weight as a medium of exchange, as the Sumerians had done somewhat earlier with silver bars. The first stamped money (having the mark of some authority in the form of a picture or words) was introduced about 650 B.C. in Lydia.
Coinage was widely adopted across Ionia and mainland Greece during the 6th century B.C., eventually leading to the Athenian Empire's 5th century B.C., dominance of the region through their export of silver coinage, mined in southern Attica at Laurium and Thorikos. A major silver vein discovery at Laurium in 483 BC led to the huge expansion of the Athenian military fleet. Competing coinage standards at the time were maintained by Mytilene and Phokaia using coins denominated in Electrum, Aegina in silver.
A Persian coin.
To make this process easier, the concept of standard coinage was introduced. Coins were pre-weighed and pre-alloyed, so as long as the manufacturer was aware of the origin of the coin, no use of the touchstone was required. Coins were typically minted by governments in a carefully protected process, and then stamped with an emblem that guaranteed the weight and value of the metal.Although gold and silver were commonly used to mint coins, other metals could be used. For instance, Ancient Sparta minted coins from iron to discourage its citizens from engaging in foreign trade. In the early seventeenth century Sweden lacked more precious metal and so produced "plate money," which were large slabs of copper approximately 50 cm or more in length and width, appropriately stamped with indications of their value.
Metal based coins had the advantage of carrying their value within the coins themselves — on the other hand, they induced manipulations: the clipping of coins in the attempt to get and recycle the precious metal. A greater problem was the simultaneous co-existence of gold, silver and copper coins in Europe. English and Spanish traders valued gold coins more than silver coins, as many of their neighbors did, with the effect that the English gold-based guinea coin began to rise against the English silver based crown in the 1670s and 1680s. Consequently, silver was ultimately pulled out of England for dubious amounts of gold coming into the country at a rate no other European nation would share. The effect was worsened with Asian traders not sharing the European appreciation of gold altogether — gold left Asia and silver left Europe in quantities European observers like Isaac Newton, Master of the Royal Mint observed with unease.
Stability came into the system with national Banks guaranteeing to change money into gold at a promised rate; it did, however, not come easily. The Bank of England risked a national financial catastrophe in the 1730s when customers demanded their money be changed into gold in a moment of crisis. Eventually London's merchants saved the bank and the nation with financial guarantees.
The system of commodity money in many instances evolved into a system of representative money. This occurred because banks would issue a paper receipt to their depositors, indicating that the receipt was redeemable for whatever precious goods were being stored (usually gold or silver money). It didn't take long before the receipts were traded as money, because everyone knew they were "as good as gold". Representative paper money made possible the practice of fractional reserve banking, in which bankers would print receipts above and beyond the amount of actual precious metal on deposit.
So in this system, paper currency and non-precious coinage had very little intrinsic value, but achieved significant market value by being backed by a promise to redeem it for a given weight of precious metal, such as silver. This is the origin of the term "British Pound" for instance; it was a unit of money backed by a Tower pound of sterling silver, hence the currency Pound Sterling. For much of the nineteenth and twentieth centuries, many currencies were based on representative money through use of the gold standard.
Credit money often exists in conjunction with other money such as fiat money or commodity money, and from the user's point of view is indistinguishable from it. Most of the western world's money is credit money derived from national fiat money currencies.
In a modern economy, a bank will lend to borrowers in excess of the reserve it carries at any time, this is known as fractional reserve banking. In doing so, it increases the total money supply above that of the total amount of the fiat money in existence (also known as M0). While a bank will not have access to sufficient cash (fiat money) to meet all the obligations it has to depositors if they wish to withdraw the balance of their cheque accounts (credit money), the majority of transactions will occur using the credit money (cheques and electronic transfers).
Predicting more complex leadership success instead of draws out severally characteristic or preferred behavior. Failing to get consistent result push attention on affecting situation. To say that leadership effectiveness hinges on situation is other instead of can segregate that condition. By dozens studies that tries choose factor is of important situation who regard leadership effectiveness. Severally approaching to sort situation's key variable evident more successful instead of the other approaching, and its result have gotten wider confession. That approaching for example: Fiedler's model, situation Hersey's theory and Blanchard, member chief interchange theory, intent band model and model chief participation. In this paper will work through probability theory fiedler's model.
Fiedler's Model probability theory
Good leader, participative, and gets consideration not eternally constitute best boss, sometimes exists exemption. Model that help this exemption is model contingent’s leadership . This model is model comprehensive possible the first for leadership which developed by Fred Fiedler and its kith. fiedler's possible model interposes that effective agglomerate performance dependent equivalents in point among interaction style of the leader and its subordinate and until zoom which that situation gives to conduct and influence to the leader. On a more specific, inspire good leadership depend on what its situation divides boss to advantage, don't advantage, or lies on the two that extreme. If its different situation, therefore leadership terms condition also different.
Fiedler developing instrument is questioner the so called LPC (Least Prefered Co worker) ? measure does someone it gets to orient free or relationship.
fiedler's model consisting of three phases which is:
Identifications inspires leadership
Fiedler is certain that prime factor in successful leadership is styled individual base leadership. Fiedler creates LPC that meaty 16 mutually adjective contrary. Then given unto by respondent to assess all co-worker it and determining one person reducing the most are liked to collaborate then assess this person on scale 1 8 for every peripheral for adjective it. A leader which not usually or less critical assess its co-worker will get tall LPC score, Fiedler calls that boss gets relationship orientation. On the contrary, a leader which critical deep assess the most co-worker insufficiently been liked it will get LPC'S score point that low, Fiedler calls as chief as get to orient task.
After inspires basic leadership an individual be assessed over LPC, new synchronize that boss with situation. Possible three-dimensional that define terms conditions factor effective nesses prescriptive main leadership terminological Fiedler which is:
a. Member chief relationship? Confidence, trust and respect subordinate to their boss.
b. Task structure? until zoom which assignation talks shop to make some rules about it (most structure or unstructured)
c. Positioning power? Indigenous influence positioning structural formal of someone in organizational it; including power to employee, dismiss, discipline, promote, and getting a raise.
The Next step is to evaluate situation, the relationship between a leader and his employee good or bad, the task structure high or low, strong positioning strong or poor. Fiedler says getting better member boss relationship, progressively most structure talks shop, and gets positioning power strength, more and more influence or conducts that proprietary chief it. Wholly, to combine variable third possible, there is eight disparate category situations prescriptive where that boss can be placed.
Synchronizing boss and situation
Fiedler's model interposes equations among LPC an individual with estimation to variable third possible to reach maximum's leadership effectiveness. Base studi Fiedler that compares among leadership style that gets to orient relationship with what does get to orient task, she concludes that boss that gets to orient its performance task tends better of situation that really backs up and also that so doesn't back up. But a leader that gets to orient relationship will its performance better in it supportive situation only.
In highly structured situation, structure and conducts boss be seen to keep away distinctive undesirable and evoked dread from a different, so approaching which more structure to be liked. In situation with task that really workaday and chief have good relationship with clerk, they may become to see task orientation as thing that supportive divides work performing (with words band). Extensive base middle part wills to mark sense membered boss relationship the better, are top dog that oriented clerk will be effective.
Score LPC Individual will establish situation type most according to boss. That situation defined by evaluates factor third possible of boss relationship – member, task structure and position power. But terminological Fiedler leadership style an unchanged individual, therefore available two tricks to repair leader effectiveness. First, with substitute boss to adjust with situation. Both of, revamping that situation match in style leadership which is applied, it can be done to make new task increasing or downs boss power in restrain internal factors.
To test validity of Fiedler's theory or model take in positive conclusion that generically. But affix variable is required as needed a revised model to fill some aught difference and about problem LPC and practical purpose of model that. Logic that mendasar LPC is hard to be understood and a lot of study has already point out that LPC'S score respondent inaccurate, and that possible variable is difficult being assessed by practitioners.
cognitive resource theory: an update to Fiedler's possible model
Year 1987, Fiedler and Joe Garcia concepted them theory. They try to word process those are sailed through a boss to get effective group performance. They call as cognitive as cognitive resource.
cognitive resource theory is a cognitive leadership which declare for that a leader gets effective group performance with firstly makes plan, decision, and effective strategy, and then communicated passes director behavior (directive).
New cognitive reality it is divided as three presages:
1. Behaviors directive to result good performance only if attached by tall intelligence deep a leadership environment without stress supportive.
2. In stress's situation, there is a positive relationship among employment experience and performance.
3. Intellectual ability from a leader gets correlation with agglomerate performance in situations that perception by the leader as is not full stress.
Fiedler and Garcia admits that cognitive supportive data that cognitive resource circumscribed and evokes perception causative result one any one different so needful more a lot of research utilized perfect original theory from Fiedler and cognitive resource theory with Joe Garcia.
The correlation and interplay among oil-market supply and demand,
falling oil prices, and the financial crisis
Why are the oil prices falling?
The oil price reflects supply and demand on the global market: A fall in oil
prices can be due to either increasing supply or decreasing demand.
How can production be on the increase when the Energy Watch Group
(EWG) assumes that the peak of global oil extraction has already been
reached? In its report “Crude Oil – The Supply Outlook”, the Energy
Watch Group explained that advanced technologies make a temporary
production increase possible. In some cases, though, employing these
methods leads to an even-more-rapid decrease in output in the long run
and sometimes actually reduces the total amount of extractable oil from
the affected fields.
The unprecedented spike in the price of oil in the period of a few months
in mid-2008 provoked a global shockwave among consumers that was
reflected in the automobile and aircraft industries even before the
“outbreak” of the financial crisis. In fact this price jump may have
actually been an important contributor to the crisis because American
home buyers were forced to divert money to cover increased energy
costs. As a result oil consumption, and in turn the price, collapsed.
The already perceptible drop in economic growth has led to an initial
slackening on the oil markets and - particularly in the face of ongoing
turmoil in the financial world - could help dictate prices. Confronted with
an economic recession or depression, oil-producing companies and
countries will have even less incentive to invest in advanced exploitation and extraction. The result could be a more rapid reduction of oil delivery
in the medium term, which could actually stimulate a rise in oil prices,
even in the midst of an economic crisis. And in a post-crisis economic
upturn, the gap between supply and demand would become even
greater, causing yet another price rise.
Conversely, the financial crisis is also influencing oil prices: Some
institutional investors in the capital markets are choosing to remove raw
materials from their portfolios in their efforts to raise liquidity to help pay
off debt, even though they incur losses due to declining values.
On the other hand, oil buyers are finding it more difficult to pre-finance
their orders (transportation, storage, etc.) because credit has become
harder to find and more expensive. This also initially weakens the
demand for oil, but will later lead to more severe price fluctuations and
higher costs for consumers.
Thus sinking oil prices are yet another sign of the institutional investors’
dire financial straits and in no way offer an all-clear in regard to a secure
supply. On the contrary, with the oil producers’ reduced inclination to
invest, sinking oil prices will exacerbate the expected shortage and
should be exploited as a chance to expand conservation and the
development of renewable energies.
The events of the past few months have made one thing crystal clear:
Fluctuations in crude oil prices will widen, becoming incalculable to an
extent that will render both long-term economic decision making and
energy planning next to impossible. Renewable energies, in contrast,
represent incomparable potential for secure investment.
Author: Thomas Seltmann (Translation Joe Greenman)
COST CLASSIFICATION, CONCEPT, AND PURPOSE
Manufacturing business Cost current and business concern
Cost current up to production function points out many the importance for difference registry among had out manufacturing and commerce business that buy goods that ready to been resolved or service aught not have stock that readily been sold.
Following is description of three stockpiling type for manufacturing business:
1. raw material, are material base cost and a part already be bought and reserve for converted by approaching term as goods which readily been sold from form that variably been classified as raw material
2. goods in processes, stockpiling that was utterly is finished but need more process before that goods gets to be sold at conceive of stockpiling in processes.
3. Finished goods, specified total cost up to production operation on exhaustive goods which utterly been fitted-up and readily on sale is agglomerated one for finished goods stockpiling.
Cost of goods sold
Business concern accounts cost of goods as follows:
Finished goods early stockpiling + commerce goods buy – goods final stockpiling commerce = cost of goods
operate for manufacturing points out cost of goods one for following:
Finished goods early stockpiling + production cost – finished goods final stockpiling = cost of goods
Manufacturing Cost Of Goods Manufacture reporting
Cost of goods manufacture can be accounted,
Cost of goods = direct raw material + direct labour + overhead cost + goodses early stockpiling in processes – goods final stockpiling in processes
Stockpiling conduct On Balance
Manufacturing business balance is essential ala as as business concern except on smooth revaluation part. Manufacturing business has three stockpiling types: finished goods, goods in stock, raw material. Three that type is reported on balance one for easy-going one asset is of service good for sell and also production for period comes.
Service firm financial statement
Stockpiling nothingness for sell at deep service firm simplifies both of balance reporting and smooth asset part on balance. All lessened cost on write-up balance, on period which its benefit was depleted. Harnessed cost classification for write-up balance is made ready for service organization manager is parting direct cost and indirect cost. Objective cost to be utilized deep differentiates among direct cost and indirect be service conduct. Service carries on business will make sure that unrealized margin on service is sizable for indirect cost mantle and unrealized results convenience.
Move Wends System Just In Time's stockpiling (JIT) In Manufacturing
There are many firm by hand out manufacturing of late have adopted system Just In Time's stockpiling (JIT) to minimize procurement cost stockpiling and at the same time fix its product quality. To the effect stockpiling system main JIT IS run with zero stockpiling, even this zoom sparse is perfect, if has once been reached. While is JIT'S stockpiling system is utilized, finished goods stockpiling at production for special order and is transferred to forthwith consumer after is finished at production. Stockpiling JIT's system need reliable provider because has no dispatch fault place raw material. Production quality shall wonderful in stock JIT because employ doesn't do action to stockpiling to report fault or damage happens. Accordingly, walking quality control effectively which is petted constantly.
periodic vs perpetually
Control stockpiling on manufacturing
Somehow environmental typical of operate for production make periodic stockpiling system is not practical but for little manufacturer firm with single product or product that has equality. With periodic system, information cost just is of service at the early physical after book keeping period stockpiling have become raw materials, goods in processes, until goods becomes. Periodic system falls short at there are many cases because management needs information to decide what has entirely as set in a period.
The Other Finances classification
Manager does ever ask for other cost information to design and keeps company operation activity as well as make decision. Amongst those as logistic as affix on numeric cost which is utilized on management process, are as follows:
Cost variable And Fixed Cost
Cost variable fluctuates on bigger proportion totaled and size activity of work as unit that at production or labour per the time of day, direct raw material cost and a part BOP one particular as grouped repair and as variable cost. Meanwhile cost will remain constant on one entire effort activity ranges per one period. On factory operational, cost will remain same without big see its total production. There are many factories overhead cost constitutes fixed cost.
Controlled and uncontrolled cost
Two highlight note of control characteristics are levels of firms and accord its time. It determines if particular cost can be controlled. We shall regard that characteristic equality concurrently. As a result of two control logistic characteristics, controllable cost is s one manager decision that can be managed or is regarded up to particular time period. On the contrary cost that doesn't be controlled is open air affecting manager because extrasensory it. Its consequence is cost which is engaged labour controlled by service manager. Anyway corporate building rent expenses can't be controlled by service manager. So, irresponsible ministering manager for charges amount leases pay on its department.
Relevant cost and Irrelevant Cost
Relevant cost is cost already be predicted different will cling to alternative that is chosen in special situation. Since that difference, will take in us on one decision, where is irrelevant cost is not such and will same on all alternative. Definition distinction in point among relevant cost and irrelevant momentous for lovely managerial decision making. So manager doesn't discard – their wasting times in regard cost will same without aside from for each alternative which is chosen.
COST CLASSIFICATION, CONCEPT, AND PURPOSE
The importance for Cost Information
Cost information used by manager for five aims:
1. Stockpiling research, management shall know cost which that includes in investor firm.
2. Propertied determination, management needs to know cost that reduce of income in write-up balance to establish gain in one period.
3. Financial planning, management needs cost information to plot future with desirable financial target.
4. Controlling, management needs information hit current cost result than expectation cost.
5. Decision maker, management oftentimes evaluates a group cost with kind – actions alternative kind which best option that is chosen. This is spontaneous on product or service design, combine or pricing.
Two terminologies that right usually been used for deep accounting management vocabulary is cost and charges. Cost is sacrificial economic of resource traded by one product or service, meanwhile charges is cost that expired. Before we can decide mean of a wide variety cost type, we shall identify aim for what we want that information. Point the importance for is that cost that variably will be used for the purpose which variably
Business enterprise Type kinds of
Two accounting judgment basics for service firm is:
1. Relative cost big for employee
2. Out of stock
Early investment for most of service firm not many or little compared with by business that gets orientation on stockpiling. Prevailing the same thing for charges to had out be reduce, advertising, and control. Inversely, human resource cost as wages, commission, training and significance tend insurance.
Gains level measure which be of important deep operational trade be gross profit which net sales be reduced by cost goods that sold. A part essential of accounting for such a operational is differentiate aright among stockpiling cost with happening operational charges deep sell and administration. Another important point is that trade operational usually been divided as department – department up on product or service that is on the market.
Producing manufacture business product that bought by retailer and grocery. Severally corporate also direct sells to society. Distribution channel regardless it, firm buys raw material and change it as finished goods on sale.
Cost classification Terminological Business Function
Needed cost in exhaustive service firm type, for commerce and manufacturing results income. Item is special cost happens to terminological firm application and classification way it clings to business function that did by firm. Manufacturing business in a general way is type carry on business most complex the favor accounting because attach production function, sell, and administration. Manufacturing cost covers all needed cost to get raw material from supplier and revamps it as finished goods which salable deep shaped different one. Cost of sales is exhaustive cost which happens to market and dropped finished goods. Administration cost is exhaustive cost which be needed for management generically corporate.
Product cost And Period
Accrual accounting doesn't let all cost becomes charges reduce income in write-up balance in a period which that cost initially been noted. Product cost terminology and momentous period cost in developmental write-up balance on corporate trade and manufacturing. Product cost is happening cost to have in stock until at the moment ready on sale. Product cost for corporate trade just consisting of buy cost because stockpiling buy ready to been resoled. In manufacturing business, all manufacturing cost element that needed to produce salable product treated as product cost. Product cost at inventorying as revaluation on balance until that products sold.
Direct cost And Indirect Cost
meaning objective cost as umpteen as activity which is done as cost of measurement that impartially. In many case, objective cost will get to measure of outgrows it output, be on the other relationship constitutes a part operation of an organization. Direct cost can be downed from special objective cost because that thing happening one eye – eye as gain of objective cost singles. Indirect cost can happen from objective cost, so constitutes general cost. Indirect cost can be downed from single objective cost, it can be utilized just in many allocation basis. Cost's mean is indirect is merging among umpteen included objective cost among those is gain at the expense.
Alternative save Of Product Cost Production Process
Severally accountant manager have extension on savvy of product cost on given production case to be inserted on same cost among producing and distributes product. The most popular trick is constant clarification product about sell and administration cost as period cost and at most to reduce it of product that is engaged gross profit on balance that separately on each product or its product line. Upon same, we need to recognize that this alternative approaching illustrated that accounting management is flexible without trick which drew by best for all case, where exists distinctive cost for the purpose that different. And is not all accounting manager agree with to have say it.
Manufacturing's Cost element
Direct raw material
Are raw material that directly get as been looked for complement part of finished goods was called by raw material direct. Indirect raw material excluding as gets kind – item's kind as lubricating oil, paste, treated screw as raw material indirect and is inserted deep cost others.
Compensation that is paid on employ that time and its effort can be found on goods that are classified as labours direct. Direct labours also is part of finished goods up to process value added in manufacturing after gets is found on goods. Needed other labours to back up production process but won't be found to solve product.
BOP can also be came to pieces as manufacturing's cost indirect, factory overhead cost or factory charges. BOP covers many item costs, for example:
1. Indirect raw material
2. Indirect labour
7. property's taxes
8. Income tax
Adam Smith published a large body of works throughout his life, some of which have shaped the field of economics. Smith's first book, The Theory of Moral Sentiments was written in 1759. It provided the ethical, philosophical, psychological and methodological underpinnings to Smith's later works, including An Inquiry Into the Nature and Causes of the Wealth of Nations (1776), A Treatise on Public Opulence (1764) (first published in 1937), Essays on Philosophical Subjects (1795), Lectures on Justice, Police, Revenue, and Arms (1763) (first published in 1896), and Lectures on Rhetoric and Belles Lettres.
The Theory of Moral Sentiments (1759)
Main article: The Theory of Moral Sentiments
In 1759, Smith published his first work, The Theory of Moral Sentiments. He continued to revise the work throughout his life, making extensive revisions to the final (6th) edition shortly before his death in 1790. Although The Wealth of Nations is widely regarded as Smith's most influential work, it has been reported that Smith himself "always considered his Theory of Moral Sentiments a much superior work to his Wealth of Nations". P. J. O'Rourke, author of the commentary On The Wealth of Nations (2007), has agreed, calling Theory of Moral Sentiments "the better book". It was in this work that Smith first referred to the "invisible hand" to describe the apparent benefits to society of people behaving in their own interests.
In The Theory of Moral Sentiments, Smith critically examined the moral thinking of the time and suggested that conscience arises from social relationships. His aim in the work is to explain the source of mankind's ability to form moral judgements, in spite of man's natural inclinations toward self-interest. Smith proposes a theory of sympathy in which the act of observing others makes people aware of themselves and the morality of their own behavior. Haakonssen writes that in Smith's theory, "Society is ... the mirror in which one catches sight of oneself, morally speaking."
In part because Theory of Moral Sentiments emphasizes sympathy for others while Wealth of Nations famously emphasizes the role of self interest, some scholars have perceived a conflict between these works. As one economic historian observed: "Many writers, including the present author at an early stage of his study of Smith, have found these two works in some measure basically inconsistent." But in recent years most scholars of Adam Smith's work have argued that no contradiction exists. In Theory of Moral Sentiments, Smith develops a theory of psychology in which individuals find it in their self-interest to develop sympathy as they seek approval of the "impartial spectator". The self-interest he speaks of is not a narrow selfishness but something that involves sympathy.
The Wealth of Nations (1776)
An often-quoted passage from The Wealth of Nations is:
It is not from the benevolence of the butcher, the brewer, or the baker that we expect our dinner, but from their regard to their own interest. We address ourselves, not to their humanity but to their self-love, and never talk to them of our own necessities but of their advantages.
Value theory was important in classical theory. Smith wrote that the "real price of every thing ... is the toil and trouble of acquiring it" as influenced by its scarcity. Smith maintained that, with rent and profit, other costs besides wages also enter the price of a commodity. Other classical economists presented variations on Smith, termed the 'labour theory of value'. Classical economics focused on the tendency of markets to move to long-run equilibrium.
Smith also believed that a division of labour would effect a great increase in production. One example he used was the making of pins. One worker could probably make only twenty pins per day. However, if ten people divided up the eighteen steps required to make a pin, they could make a combined amount of 48,000 pins in one day.
Shortly before his death, Smith had nearly all his manuscripts destroyed. In his last years, he seemed to have been planning two major treatises, one on the theory and history of law and one on the sciences and arts. The posthumously published Essays on Philosophical Subjects, a history of astronomy down to Smith's own era, plus some thoughts on ancient physics and metaphysics, probably contain parts of what would have been the latter treatise. Lectures on Jurisprudence were notes taken from Smith's early lectures, plus an early draft of The Wealth of Nations, published as part of the 1976 Glasgow Edition of the works and correspondence of Adam Smith.
Other works, including some published posthumously, include Lectures on Justice, Police, Revenue, and Arms (1763) (first published in 1896); A Treatise on Public Opulence (1764) (first published in 1937); and Essays on Philosophical Subject (1795).
The Wealth of Nations, one of the earliest attempts to study the rise of industry and commercial development in Europe, was a precursor to the modern academic discipline of economics. In this and other works, Smith expounded how rational self-interest and competition can lead to economic prosperity and well-being. It also provided one of the best-known intellectual rationales for free trade and capitalism, greatly influencing the writings of later economists. Smith was ranked #30 in Michael H. Hart's list of the most influential figures in history, and he is often cited as the father of modern economics.
George Stigler attributes to Smith the central proposition of mainstream economic theory, namely that an individual will invest a resource, for example, land or labour, so as to earn the highest possible return on it. Consequently, all uses of the resource should yield a risk-adjusted equal rate of return; otherwise resource reallocation would result.
Classical economists presented variations on Smith, termed the 'labour theory of value', later Marxian economics descends from classical economics also using Smith's labor theories in part. The first volume of Karl Marx's major work, Capital, was published in German in 1867. In it, Marx focused on the labour theory of value and what he considered to be the exploitation of labour by capital. The labour theory of value held that the value of a thing was determined by the labor that went into its production. This contrasts with the modern understanding of mainstream economics, that the value of a thing is determined by what one is willing to give up to obtain the thing. It is a paradox that Smith is often cited not only as the conceptual builder of free markets in capitalism but also as a main contributor to communist theory, via his influence on Marx.
A body of theory later termed 'neoclassical economics' or 'marginalism' formed from about 1870 to 1910. The term 'economics' was popularized by such neoclassical economists as Alfred Marshall as a concise synonym for 'econonic science' and a substitute for the earlier, broader term 'political economy' used by Smith. This corresponded to the influence on the subject of mathematical methods used in the natural sciences. Neoclassical economics systematized supply and demand as joint determinants of price and quantity in market equilibrium, affecting both the allocation of output and the distribution of income. It dispensed with the labour theory of value of which Smith was most famously identified with in classical economics, in favor of a marginal utility theory of value on the demand side and a more general theory of costs on the supply side.
As a symbol of free market economics
Adam Smith's Spinning Top, sculpture by American artist James Sanborn at Cleveland State University
Smith has been celebrated by advocates of free market policies as the founder of free market economics, a view reflected in the naming of bodies such as the Adam Smith Institute, Adam Smith Society and the Australian Adam Smith Club, and in terms such as the Adam Smith necktie.
However, other writers have argued that Smith's support for laissez-faire has been overstated. Herbert Stein wrote that the people who "wear an Adam Smith necktie" do it to "make a statement of their devotion to the idea of free markets and limited government", and that this misrepresents Smith's ideas. Stein writes that Smith "was not pure or doctrinaire about this idea. He viewed government intervention in the market with great skepticism ... yet he was prepared to accept or propose qualifications to that policy in the specific cases where he judged that their net effect would be beneficial and would not undermine the basically free character of the system. He did not wear the Adam Smith necktie." In Stein's reading, The Wealth of Nations could justify the Food and Drug Administration, The Consumer Product Safety Commission, mandatory employer health benefits, environmentalism, and "discriminatory taxation to deter improper or luxurious behavior".
Similarly, Vivienne Brown stated in The Economic Journal that in the 20th century United States, Reaganomics supporters, The Wall Street Journal, and other similar sources have spread among the general public a partial and misleading vision of Adam Smith, portraying him as an "extreme dogmatic defender of laissez-faire capitalism and supply-side economics". Noam Chomsky has argued that several aspects of Smith's thought have been misrepresented and falsified by contemporary ideology, including Smith’s reasons for supporting markets and Smith’s views on corporations. Chomsky argues that Smith supported markets in the belief that they would lead to equality. Economic historians such as Jacob Viner regard Smith as a strong advocate of free markets and limited government (what Smith called "natural liberty") but not as a dogmatic supporter of laissez-faire.
Source : wikipedia
World stock markets dived Thursday, particularly in Asia where investors played catch-up with previous losses in Europe and the United States, after dismal U.S. retail sales data and fresh worries about the global banking system.
Every market in Asia suffered steep declines, with broad selling seen across industries from energy to financials to exporters. A record 16.2 percent fall in Japanese machinery orders in November from the previous month further hurt sentiment in Asia. The Nikkei plunged 415.14 points, or 4.9 percent, to 8,023.31, while Hong Kong's Hang Seng Index fell 461.65 points, or 3.4 percent, to 13,242.96 after earlier sinking about 5 percent. South Korea's Kospi dropped 6 percent to 1,111.34, while markets in Australia and Taiwan fell 4 percent or more. Singapore's benchmark was down 3.4 percent but Shanghai stocks were only slightly lower.
In Europe, the losses were less marked, as the major indexes had tumbled almost 5 percent on Wednesday and because of expectations the European Central Bank will cut interest rates later in the day. The FTSE 100 index of leading British shares was down 16.81 points, or 0.4 percent, at 4,163.83, while Germany's DAX dropped 20.85 points, or 0.5 percent, to 4,401.50. France's CAC-40 fell 23.30, or 0.8 percent, to 3,028.70.
Stock markets are suffering one of their sharpest drops since November as investors' hopes of a turnaround in the world economy by the second half of the year have diminished amid increasingly grim economic and corporate news. The rally in stock markets over December and the early days of 2009 was largely founded on expectations that the recession would start to show signs of ending, at least by the second half of this year.
'American consumer is ... toast'
"The American consumer is — as we say in the U.S. — toast, finished, done," said Stephen Roach, chairman of Morgan Stanley Asia Ltd. in Hong Kong. "The consumer is going down for the count here, and there's more to come."
Meanwhile, a flood of negative news in the financial industry reignited worries that international banks would suffer ever-bigger losses and be forced to raise billions more in capital as the world economy deteriorates.
The financial health of the world's banks also resurfaced as a major concern in markets when Citigroup Inc. confirmed it is to merge its Smith Barney brokerage into a joint venture with Morgan Stanley, relinquishing control in exchange for $2.7 billion in badly needed cash.
Reports have also surfaced that the U.S. government is close to supplying Bank of America Corp., the nation's biggest bank by assets, with billions of dollars more in aid after it agreed to acquire debt-ridden Merrill Lynch & Co. Meanwhile, analysts at Morgan Stanley warned that HSBC PLC may have to raise up to $30 billion and halve its dividend to plug a capital shortfall.
Investors will be keeping a close eye on the European Central Bank, which delivers its latest interest rate decision at 1245 GMT. Though the bank is expected to cut its benchmark interest rate again from the current 2.5 percent amid the increasingly grim economic data and a sharper than expected drop in inflation, the size of the reduction remains unclear.
"The ECB may have the scope to deliver some cheer, especially if they can convince traders that their aggressive stance over rate cuts will be sustained as the prospect of even lower yields on cash could lend a degree of support to stocks," said Matt Buckland, a dealer at CMC Markets. Sentiment remains low in the United States after Wednesday's 248.42 points fall to 8,200.14, its lowest close since Dec. 1. All 30 stocks that make up the Dow fell. The broader Standard & Poor's 500 index fell 29.17, or 3.4 percent, to 842.62. Dow futures were 29 points, or 0.4 percent, lower at 8,130 while S&P500 futures fell 3.4 points, or 0.4 percent, to 836.40. Oil prices lost ground again, with light, sweet crude for February delivery off 63 cents at $36.65 a barrel. Meanwhile, the dollar slipped 0.1 percent to 88.86 yen while the euro dropped 0.2 percent to $1.3154.
Source : msnbc.com
Nearly we may not get to result money without have capital or money to launch forth because to launch forth have to need capital. But if I am brought up on condition creating money without money , in the meaning have no cowries or capital in launches forth, therefore capital to launch forth me am capital think, knowledge, and science.
One of the ways that we can result money without money but utilize capital that I above have are with make effort or business plan proposal for then are proposed to capital owner or investor, where is our following will get position as owner or investor effort and one owner our effort as investor that give capital or investor who will get a part gain. In this case we don't utilize our own money but utilize seed money of others, so we carry on to carry on business others with capital our currently one have, which is think, knowledge and science.
Money that we gets will come from business that we runs that, and can utilize production sharing system where gain that is gotten will be divided among us, going person carries on business by capital or investor owner. Its outgrows division gain result depend with agreement already agreed, can 50 - 50, 60 - 40, or 70 - 30 pending deals.
For the example, i will propose restaurant business effort, therefore we will mobilize all capital that we have which is think, knowledge and science for can block out effort that as lovely as and as fledged as maybe so in the end business plan which we interesting can give a damn investor to give capital on our to carry on that business. Then takes example by acquired gain of this business is as big as 10million rupiahs every month, and profit sharing already agreed 50 – 50, therefore that money that we gets is as big as 5million rupiahs each every month. With that money, we gets we can do pay installment investor capital return and finally by degrees that effort wills be ours undivided and gain that is gotten will have us utterly. On eventually we can result money without have money or capital for going an effort.
Full name Adam Smith
Birth Baptised 16 June 1723
[OS: 5 June 1723]
Kirkcaldy, Fife, Scotland
Death 17 July 1790 (aged 67)
School/tradition Classical economics
Main interests Political philosophy, ethics, economics
Notable ideas Classical economics,
modern free market,
division of labour,
the "invisible hand"
Adam Smith was born to Margaret Douglas at Kirkcaldy, Scotland. His father, also named Adam Smith, was a lawyer, civil servant, and widower who married Margaret Douglas in 1720. His father died six months before Smith's birth. The exact date of Smith's birth is unknown; however, his baptism was recorded on 16 June 1723 at Kirkcaldy. Though few events in Smith's early childhood are known, Scottish journalist and biographer of Smith John Rae recorded that Smith was abducted by gypsies at the age of four and eventually released when others went to rescue him.
Smith was particularly close to his mother, who likely encouraged him to pursue his scholarly ambitions. Smith attended the Burgh School of Kirkcaldy from 1729 to 1737, and there studied Latin, mathematics, history, and writing. Rae characterized the Burgh School as "one of the best secondary schools of Scotland at that period".
A commemorative plaque for Adam Smith is located at Smith's home town of Kirkcaldy.
Smith entered the University of Glasgow when he was fourteen and studied moral philosophy under Francis Hutcheson.Here he developed his passion for liberty, reason, and free speech. In 1740, Smith was awarded the Snell exhibition and left the University of Glasgow to attend Balliol College, Oxford.
Smith considered the teaching at Glasgow to be far superior to that at Oxford, and found his experience there to be intellectually stifling. In Book V, Chapter II of The Wealth of Nations, Smith wrote: "In the University of Oxford, the greater part of the public professors have, for these many years, given up altogether even the pretence of teaching." Smith is also reported to have complained to friends that Oxford officials once detected him reading a copy of David Hume's Treatise on Human Nature, and they subsequently confiscated his book and punished him severely for reading it. According to William Robert Scott, "The Oxford of [Smith's] time gave little if any help towards what was to be his lifework." Nevertheless, Smith took the opportunity while at Oxford to teach himself several subjects by reading many books from the shelves of the large Oxford library. When Smith was not studying on his own, his time at Oxford was not a happy one, according to his letters. Near the end of his time at Oxford, Smith began suffering from shaking fits, probably the symptoms of a nervous breakdown. He left Oxford University in 1746, before his scholarship ended.
Teaching and early writings
Smith began delivering public lectures in 1748 at Edinburgh under the patronage of Lord Kames. His lecture , economics, and religion indicate that they shared a closer intellectual alliance and friendship than with the others who were to play important roles during the emergence of what has come to be known as the Scottish Enlightenment.
In 1751, Smith earned a professorship at Glasgow University teaching logic courses. When the Chair of Moral Philosophy died the next year, Smith took over the position. Smith would continue academic work for the next thirteen years, which Smith characterized as "by far the most useful and therefore by far the happiest and most honourable period [of his life]". His lectures covered the fields of ethics, rhetoric, jurisprudence, political economy, and "police and revenue".
He published The Theory of Moral Sentiments in 1759, embodying some of his Glasgow lectures. This work was concerned with how human communication depends on sympathy between agent and spectator, or the individual and other members of society. His analysis of language evolution was somewhat superficial, as shown only fourteen years later by a more rigorous examination of primitive language evolution by Lord Monboddo in his Of the Origin and Progress of Language. Smith showed strong capacity for fluent and persuasive—if rather rhetorical—argument. He bases his explanation not on a special "moral sense", as the third Lord Shaftesbury and Hutcheson had done, nor on utility as Hume did, but on sympathy. Smith's popularity greatly increased due to the The Theory of Moral Sentiments, and as a result, many wealthy students left their schools in other countries to enroll at Glasgow to learn under Smith.
After the publication of The Theory of Moral Sentiments, Smith began to give more attention to jurisprudence and economics in his lectures and less to his theories of morals. The development of his ideas on political economy can be observed from the lecture notes taken down by a student in 1763, and from what William Robert Scott described as an early version of part of The Wealth of Nations. For example, Smith lectured that labor—rather than the nation's quantity of gold or silver—is the cause of increase in national wealth.
François Quesnay, one of the leaders of the Physiocratic school of thought
In 1762, the academic senate of the University of Glasgow conferred on Smith the title of Doctor of Laws (LL.D.). At the end of 1763, he obtained a lucrative offer from Charles Townshend (who had been introduced to Smith by David Hume) to tutor his stepson, Henry Scott, the young Duke of Buccleuch. Smith subsequently resigned from his professorship to take the tutoring position. Because he resigned in the middle of the term, Smith attempted to return the fees he had collected from his students, but they refused.
Tutoring and travels
Smith's tutoring job entailed touring Europe with Henry Scott while teaching him subjects including proper Polish. Smith was paid £300 per year plus expenses along with £300 per year pension, which was roughly twice his former income as a teacher. Smith first traveled as a tutor to Toulouse, France, where he stayed for a year and a half. According to accounts, Smith found Toulouse to be very boring, and he wrote to Hume that he "had begun to write a book in order to pass away the time". After touring the south of France, the group moved to Geneva. While in Geneva, Smith met with the philosopher Voltaire. After staying in Geneva, the party went to Paris.
While in Paris, Smith came to know intellectual leaders such as Benjamin Franklin, Turgot, Jean D'Alembert, André Morellet, Helvétius and, in particular, Francois Quesnay, the head of the Physiocratic school, whose work he respected greatly. The physiocrats believed that wealth came from production and not from the attainment of precious metals, which was adverse to mercantilist thought. They also believed that agriculture tended to produce wealth and that merchants and manufacturers did not. While Smith did not embrace all of the physiocrats ideas, he did say that physiocracy was "with all its imperfections [perhaps] the nearest approximation to the truth that has yet been published upon the subject of political economy".
Adam Smith's burial place in Canongate Kirkyard
Later years and writings
In 1766, Henry Scott's younger brother died in Paris, and Smith's tour as a tutor ended shortly thereafter. Smith returned home that year to Kirkcaldy, and he devoted much of the next ten years to his magnum opus which was published in 1776. The publication of the book was an instant success, selling out the first edition in only six months.
In May 1773 he was elected fellow of the Royal Society of London, and was elected a member of the Literary Club in 1775. In 1778 Smith was appointed to a post as commissioner of customs in Scotland and went to live with his mother in Edinburgh. Five years later, he became one of the founding members of the Royal Society of Edinburgh, and from 1787 to 1789 he occupied the honorary position of Lord Rector of the University of Glasgow. He died in Edinburgh on 17 July 1790 after a painful illness and was buried in the Canongate Kirkyard. On his death bed, Smith expressed disappointment that he had not achieved more.
Smith's literary executors were two friends from the Scottish academic world: the physicist and chemist Joseph Black, and the pioneering geologist James Hutton. Smith left behind many notes and some unpublished material, but gave instructions to destroy anything that was not fit for publication. He mentioned an early unpublished History of Astronomy as probably suitable, and it duly appeared in 1795, along with other material such as Essays on Philosophical Subjects.
James Tassie's enamel paste medallion of Smith provided the model for many engravings and portraits which remain today.
Not much is known about Smith's personal views beyond what can be deduced from his published works. His personal papers were destroyed after his death. He never married and seems to have maintained a close relationship with his mother, with whom he lived after his return from France and who died six years before his own death.
Contemporary accounts describe Smith as an eccentric but benevolent intellectual, comically absent minded, with peculiar habits of speech and gait and a smile of "inexpressible benignity". He was known to talk to himself, and had occasional spells of imaginary illness.
Smith is often described as a prototypical absent-minded professor. He is reported to have had books and papers stacked up in his study, with a habit he developed during childhood of speaking to himself and smiling in rapt conversation with invisible companions.
Various anecdotes have discussed his absentminded nature. In one story, Smith reportedly took Charles Townshend on a tour of a tanning factory and while discussing free trade, Smith walked into a huge tanning pit from which he had to be removed. Another episode records that he put bread and butter into a teapot, drank the concoction, and declared it to be the worst cup of tea he ever had. In another example, Smith went out walking and daydreaming in his nightgown and ended up 15 miles (24 km) outside town before nearby church bells brought him back to reality.
Source : wikipedia