Difference between Nominal GDP and Real GDP

The Gross Domestic Product (GDP) of a country is the value in the market of all goods and services produced in a certain area or a certain country within a certain period of time (Investopedia. com). It is usually used to measure the size of the country’s economy. However, there are other aspects that should be considered in the measurement of the country’s GDP. This is where the Nominal and Real GDP comes in. The Nominal GDP is gross domestic product in that year’s prices (Investorwords.com).For example, the GDP of 2006 is dependent on the value of the dollar in 2006. It is not affected by other factors like inflation rates and others that would tend to decrease the actual GDP. Nominal GDP on the other hand, may increase due to the increased output of an economy, or when the prices in that economy have also increased. However, Nominal GDP may not be that useful as a gauge of the country’s production, since it is not affected by the actuality of the curren t inflation rates.Because of this, the Real GDP is a much preferred measure. The Real Gross Domestic Product on the other hand, is defined as the number that results from computing all the productive activity within the country depending on that certain year’s prices (FX Words). But when what is being valued is the economic activity of more than one period of time, and then the purchasing power will be computed and compared.Because of this, the effects of the inflation at that year should be removed by maintaining constant prices. This usually lowers the computed GDP value instead of increasing it like the effect in Nominal GDP. It is the nominal GDP stated in the base-year level of price, wherein it is the nominal GDP of a certain year adjusted for inflation. The Real GDP is being expressed as a percentage.

Retailing businesses Essay

Different retailing businesses have very different distribution methods based on the types of product that they sell, some arguably more effectively than others. As mentioned in an earlier assignment, there are three main types of distribution channels. The first is the channel that goes from the producer, then to the wholesaler, then to the retailer or sells to the consumer. The second channel starts with the producer who sells straight to the retailer, who then sells to the consumer. The third channel goes directly from the producer to the consumer. Channels one and two are classed as indirect marketing channels, whereas channel three is a direct marketing channel as it goes straight from producer to consumer. All of the distribution channels start with a producer who will create the products, for example the person that milks the cows to get milk. For the first channel, the producer makes the product and then sells it to a wholesaler, such as Costsco who will purchase a huge quantity of products from them. They would do this to make sure that they have enough to sell onto retailers. They would keep a large amount of the product, for example some kind of confectionary, in there warehouse so they’re in a suitable environment to be kept until they’re sold on. Next, the retailer, who could be a small store or a larger store, who would want to purchase a specific amount of products from the wholesalers, not in as bulk form as the wholesaler would have purchased them in. This method would typically be used by used by smaller, more personal stores, that don’t need to buy in such bulk. This channel is effective for confectionary products for example, as Costco can get sweets such as Dairy Milk bars, or Skittles, at an incredibly low price for huge boxes. It is good because it means that the businesses further down the chain will have confidence that they will be able to get the products that they want because the wholesaler gets the items I such bulk and if they sell all of their products, they can replenish easily. For the second channel, the retailer can give their consumers a guarantee that the product is fresher than if they used channel one, as they are getting the product directly from the producer before selling it to the consumer. This is because companies get the products directly from producers so they can guarantee the quality, unlike the first channel where the products go through two separate distributors which could contaminate the product or  raise the risk of it being damaged. An example of this would be the electronics company Sony. Due to the fact that Sony produces their own products and then sells them onto other electronic stores such as Currys/PC World who will then sell the products onto the consumers. The third Channel will typically deal with the consumer directly rather than using a middleman. This means that the customer will get the product or service at that moment on purchase. An example of this could be seen with Gregg’s Bakery. Due to the fact they will have their products made on site and would be able to sell their customers everything they have produced in store without using other stores ford or bringing in any assistance. By doing this it gives Greggs a better look by being able to say that they produce all of their products on site and they can also guarantee that the products are fresh. Different sectors of business will use different techniques when going through the distribution stage differently. This can be from the difference of storing products whilst distributing them and how they actually transport the product to the next person in the channel. For example, how a food retailer and gets their products distributed will be different to how a clothing sto re gets theirs. For a restaurant they use a wide variety of produces such as local farmers and local fishermen, depending on the type of restaurant that they own. They could have very specific producers, for example if they were a halal based restaurant they would have to be very specific about their supplier. Then they will have to either make a deal with the producer/supplier so they can collect produce direct from them. Then they will prepare the food ready to cook it and will store the prepared ingredients safely at the correct temperature. They will then wait for the person at the end of the chain – the consumer – to come to the restaurant to cook it for them. This is good for the producer because money will track back to them through the restaurant gaining the money from selling the meals. The money goes into the restaurant from customers pockets, and then the restaurant will use a portion of this money to re-purchase some supplies from the producer. This is when a good working relationship will develop between them as they will gain more sales and earn more money back. Continuing with a food retailer, Greggs or a restaurant will want to get fresher ingredients than other retailers so that they can make sure they produce all of their products to be as fresh as can be. This  can be done for example by Gregg’s own in-store bakeries having their ingredients delivered in the morning and then they bake them the same morning to make sure they are as fresh as possible. When they order the ingredients from the producers they will have to check that the supplier is storing the produce correctly before purchasing, otherwise they may purchase products that could be unsuitable for them to use and if they did use them, could create problems for them in the future. A good example of this could be seen with restaurants purchasing fish. A lot of the time they would send an employee to get it directly after it has been caught on the boat . They do this so that there are no issues with how the fish is stored, as if it is stored incorrectly whilst distributed it will cause severe food poisoning and could lead to the restaurant getting sued or shut down. A clothing retailer will start the process from the producer then they will involve the their designers and then they would create the products. If the retailer manufactures their own brand clothing for example Primark the producers send the finished garments directly to their warehouses fir distribution into their stores. If it is a clothing retailer that buys garments from fashion houses or via intermediaries then the finished items would go to their wholesalers and then potentially go to retailers depending on what business it is and then finally, they would be bought by the consumers. They would start the process by collecting the cotton from the cotton farmers then they would be shipped off to the factories where weavers and designers will create the fabrics, the fabric factories will then sell them to clothing manufacturing companies who will create something that retailers can sell on to make a profit from the whole process. When they have been created they will choose either to sell them onto a wholesaler or to only sell it in their particular stores. With some businesses having stores in other countries it means they have to have all of their products send to one area then they will have to have those products sent to other stores across to other countries, extending the distribution channels. A retail business such as House of Fraser will be using the second channel. This means that they will get their clothing material/parts sent to them and then thy will create their products, and then send them to their retail stores. Because they have a large area inside their stores to store and display their stock it means they can have a large amount of one clothing item on sale at once. Because  House of Fraser is a bigger company than Greggs they will be using more trucks to get their products to them. Another difference between the two would be that House of Fraser will be able to store their products for a longer period of time due to them selling the non-perishable products unlike Greggs, who make the majority of their products on a daily basis and at the end of the day would have to throw those products away otherwise they would go off. In terms of cost, a restaurant will be willing to spend money in order to get products distributed to them in a safe and hygienic way, as long as they know the full process that the products take. For other businesses, such as Primark, the aim is to get them distributed to them at a very low cost, as long as the products aren’t damaged. This is because the products aren’t perishable and there is no need to store them in any specific way to keep them secure.

Louise Bourgeois Essay

Much can be learned from the environment within which we live. What we see tells a lot about the society in which we live: belief system; politics; economic undertakings; kinship and material culture among others. Through material culture, we can get insight into the world that existed long before us. Culture can be defined as the way of life of people depicting their shared experiences, political and religious beliefs, technology, insights, attitudes, and material objects. (Li & Karakowsky) The sublime can be defined as the priced greatness or vast intensity in terms of biological, moral, mental, metaphysical, beauty, art or religion. Sublime is experienced over and over. It is embedded in our history, being, values, thoughts, concepts, world views, beliefs, and is responsible for our personalities (Bernadac 2007 p20) Main Body One of America’s renowned artist and sculptor, Louise Bourgeois, managed to capture the American Sublime through her artistic undertaking. She was born in Paris, France in December 25, 1911 but traveled to America in 1938 to perfect her artistic endeavor. She studied mathematics at the Sorbonne, and painting and sculpture in Ecole du Louvre, Ecole des Beaux-Arts, and Art Students League of New York. She worked as an assistant to Fernand Henri Leger- a French sculptor, painter, and film maker. She is popular for her work that depicts spiders, sculptures, drawings and literary work (National Gallery of Canada 2005 p16). As a way of depicting the society in which she was living, Bourgeois’ work is full of inanimate images of horrifying fear, ghosts, darkness, tortured people, and disabling mental illness to attempt to get at the source of these emotions and to uphold normality even in times of chaos. Her works helped depict the intellectual climate, social and historical conditions that existed then. (Gorovoy et al 2006 pp 27 -28) She captured the effects of the First World War through carving limbless sculptures and detached limbs and had most of his paintings and sculptures painted black to depict death and mourning, (Gorovoy et al 2006 p 24) e. g. the two headless fabric bodies attempting to make love shown below. She depicts the revolution of the western politics, largely constructivism, through posters that expressed sympathy towards the Russian regime which she displayed in Moscow. The Tate Modern exhibition catalogue indicates her inclination towards Communism. Bourgeois made abstract art pieces that reflected on her childhood experiences showing how relationships within the family were entwined together thus bringing in the aspect of kinship, socialization and acculturation. This depicts how her art gives us insight to how children were brought up back then. (Lippard 2003 pp 9-10) Her Femme Maison and Fallen woman series introduced the aspect of liberation of women. They depicted a female struggling to outgrow some house like structures within which she is trapped – that is attempting to outgrow the masculinity into which the women were entrapped. She depicts a rebellion against the negative masculinity through her work, The Destruction of a Father, in which rock figures surround a sacrificial slab full of butchered body parts. Thus: It has been suggested that her sculpture, The Blind Leading the Blind, has a religious connotation. According to Desmond Michael and Lloyd Michael (1870-1970) Bourgeois, inspired by the Cold War, made this sculpture and that the title was picked from the New Testament verse (Matthew 15:14) that describes how a blind man leading another blind man would end up in a ditch. The structure is shown below (Bernadac 2007) Bourgeois’ contribution to the American Sublime is best captured in New York’s Guggenheim Museum, the Centre Pompidou in Paris and London’s Tate Modern with their massive collection of her art work. In conclusion, the American Sublime has been captured through art in poetry, carvings, paintings, songs, books, and which take us back to the origins of the cultures of past American societies. Just like the origins of the American sublime can be traced through studying works of art, similarly, so can we understand much about its revolution from the contemporary art works. Louise Bourgeois has managed to get this through her sculptures, drawings and works of art – reflecting abstract as well as tangible aspects of living that relate to feelings, political standing, material culture, religious inclination, beliefs and kinship. References Bernadac, M (2007) â€Å"Louise Bourgeois† Rizzoli International North America pp 18 – 24 Gorovoy, J. , Carver R. & Read C. (2006) â€Å"Louise Bourgeois† Bellport Press University of Michigan pp 21-35 Lippard R (2003) â€Å"Overlay: contemporary art and the art of prehistory† Pantheon Books NY pp 7-16 National Gallery of Canada (2005) â€Å"Louise Bourgeois Maman† National Gallery Canada press pp 14-17

Graduation Speech

First of all, I would like to thank you all for coming to our graduation. What this ceremony is, is a celebration of a major accomplishment in our lives, the accomplishment of achieving an education. For many of us it has taken a lot of blood, sweat, and tears to get here, so today is our reward for the long hours we devoted to reading, writing, and researching, for the stress of taking difficult tests, and for the difficulties we have had to overcome. Though this ceremony recognizes OUR efforts in this accomplishment, it also recognizes and pays homage to the dedication of our parents. Today is the return on the work they invested in us through patient teaching and parenting. We would not have been able to accomplish this much without their help. Their guidance has allowed us to grow into men and woman of character, capable of doing great things. This ceremony is also both an end, and a beginning. It is the end of childhood, of a period of growing and maturing. But, it is also the beginning of a new chapter in our lives, one that is full of the promise of what we may accomplish. While I have the time I want to address the accomplishments of the past as well as the promise and potential of the future. Graduating is our accomplishment, but we wouldn’t have made it here if it wasn’t for the heroic efforts of our parents. They are the ones who chose to add to their titles of parent, homemaker, and provider, the title of teacher, and with that the responsibility of educating us. They voluntarily took on this extra responsibility, because they felt that personally seeing to our education was best for us, so at the expense of their free time, and perhaps just a bit of their sanity, they decided to home school us. It was this dedication to giving us the best education possible that has brought us here. Whenever we struggled in school, whenever we didn’t understand, they did what it took to help us learn, usually, that meant spending even more of the precious little free time they had not already sacrificed to homeschooling, to teaching and relearning every subject that they hated to do when they were in school. When we were frustrated and on the verge of throwing our textbooks across the room, they where the ones who came and spoke the encouraging words that motivated us to overcome whatever trouble we encountered. As our teachers, they taught us much, but as our parents they taught us even more. Along with giving us lessons in math and science, they have constantly taught us lessons in values. By their example, we have learned to walk with integrity and faith, showing character in all that we do. They have shown us that there is no limit to what we can accomplish when we work diligently and patiently. These values will stay with us longer than anything else that we have learned. No matter where we go, no matter what we do, they will be there to help guide us. With graduation ends our journey through high school. For many of us, it’s been a long, rough road to get here. Difficulties have come in the form of poor health and injury. Some of us have struggled financially, and all of us have faced the pressure of difficult classes. These trials have not made us bitter, they have not crushed our spirit, but they have helped shape us. Often it turns out that difficulty, strife, and stress are ingredients of strength, for instance steel is one of the most reliable and durable materials known to man. To make steel, iron ore is heated to a temperature of over one-thousand degrees Celsius, but because of that incredible heat, it becomes strong. It can then be made into almost anything: bridges, skyscrapers, ships, airplanes, tools, machines, even works of art. From the incredible heat it is subjected to, it gains the strength that allows it to be used to anything. The challenges we have faced have strengthened us like the heat strengthens steel. From our adversity, we have learned to overcome, to meet hardship with hard work, hopelessness with faith, and to be unyielding in all of our values. Now we stand here, as adults preparing to walk out into the world, ready to shape our future, and no matter what path we take in life I know that we will never forget the life lessons that have been taught to us, they will enable us to be successful in all of our endeavors. We are ready to become students with an open mind and a hunger for knowledge, pursuing truth with the aid of the wisdom and discernment impressed upon us by our parent’s teachings, or to become workers ready to excel at our jobs because of the examples set before us in diligence and discipline by our parents and role models. Yes, for us the future looks bright! Graduation Speech First of all, I would like to thank you all for coming to our graduation. What this ceremony is, is a celebration of a major accomplishment in our lives, the accomplishment of achieving an education. For many of us it has taken a lot of blood, sweat, and tears to get here, so today is our reward for the long hours we devoted to reading, writing, and researching, for the stress of taking difficult tests, and for the difficulties we have had to overcome. Though this ceremony recognizes OUR efforts in this accomplishment, it also recognizes and pays homage to the dedication of our parents. Today is the return on the work they invested in us through patient teaching and parenting. We would not have been able to accomplish this much without their help. Their guidance has allowed us to grow into men and woman of character, capable of doing great things. This ceremony is also both an end, and a beginning. It is the end of childhood, of a period of growing and maturing. But, it is also the beginning of a new chapter in our lives, one that is full of the promise of what we may accomplish. While I have the time I want to address the accomplishments of the past as well as the promise and potential of the future. Graduating is our accomplishment, but we wouldn’t have made it here if it wasn’t for the heroic efforts of our parents. They are the ones who chose to add to their titles of parent, homemaker, and provider, the title of teacher, and with that the responsibility of educating us. They voluntarily took on this extra responsibility, because they felt that personally seeing to our education was best for us, so at the expense of their free time, and perhaps just a bit of their sanity, they decided to home school us. It was this dedication to giving us the best education possible that has brought us here. Whenever we struggled in school, whenever we didn’t understand, they did what it took to help us learn, usually, that meant spending even more of the precious little free time they had not already sacrificed to homeschooling, to teaching and relearning every subject that they hated to do when they were in school. When we were frustrated and on the verge of throwing our textbooks across the room, they where the ones who came and spoke the encouraging words that motivated us to overcome whatever trouble we encountered. As our teachers, they taught us much, but as our parents they taught us even more. Along with giving us lessons in math and science, they have constantly taught us lessons in values. By their example, we have learned to walk with integrity and faith, showing character in all that we do. They have shown us that there is no limit to what we can accomplish when we work diligently and patiently. These values will stay with us longer than anything else that we have learned. No matter where we go, no matter what we do, they will be there to help guide us. With graduation ends our journey through high school. For many of us, it’s been a long, rough road to get here. Difficulties have come in the form of poor health and injury. Some of us have struggled financially, and all of us have faced the pressure of difficult classes. These trials have not made us bitter, they have not crushed our spirit, but they have helped shape us. Often it turns out that difficulty, strife, and stress are ingredients of strength, for instance steel is one of the most reliable and durable materials known to man. To make steel, iron ore is heated to a temperature of over one-thousand degrees Celsius, but because of that incredible heat, it becomes strong. It can then be made into almost anything: bridges, skyscrapers, ships, airplanes, tools, machines, even works of art. From the incredible heat it is subjected to, it gains the strength that allows it to be used to anything. The challenges we have faced have strengthened us like the heat strengthens steel. From our adversity, we have learned to overcome, to meet hardship with hard work, hopelessness with faith, and to be unyielding in all of our values. Now we stand here, as adults preparing to walk out into the world, ready to shape our future, and no matter what path we take in life I know that we will never forget the life lessons that have been taught to us, they will enable us to be successful in all of our endeavors. We are ready to become students with an open mind and a hunger for knowledge, pursuing truth with the aid of the wisdom and discernment impressed upon us by our parent’s teachings, or to become workers ready to excel at our jobs because of the examples set before us in diligence and discipline by our parents and role models. Yes, for us the future looks bright!

Acid test ratio vs current ratio

The Current ratio and the Acid-test ratio, both fall under the category of financial ratios.   These two ratios examine the capability of an organization to pay those creditors, whose debts are below the stipulated period of twelve months.   Such short-term debts usually consist of 30 or 60 days credit period.   Indeed under the two ratios the Current Liabilities are considered as the debt to be covered by the assets considered on the numerator of the ratio. The higher these ratios, the better are the financial position of the firm.   However, a number of factors have to be considered by both ratios before remarking on the financial position of the company.   For instance, one has to consider the nature of the business and the effect of seasonal variations before giving drastic conclusions.   In fact, such ratios are frequently examined by analyzing the financial position of the same organization over time or in relation to the industry average in which the firm operates. The main difference that lies between these ratios is the analyses of the liquidity of the current assets taken.   Under the current ratio, all the current assets of the firm are considered in the formula.   However, the acid-test ratio examines the assets that can be easily converted into cash in relation to the current liabilities of the firm.   As a result, the stock value, which is the least liquid asset, is deducted from the current assets in this ratio. Under these ratios, the short-term assets are divided by the current liabilities in order to see by how many times can such assets cover these liabilities.   For instance, if at the financial year ended 31st December 2006 a firm had a total current assets of $200,000, and the current liabilities added up to $100,000, the current ratio would be calculated as follows: This result indicates that the current assets of the firm can meet by two times as much the present current obligations of the organization.   The same principle applies for the acid-test ratio with the exception that stock is removed from the current assets as already stated in the previous paragraph.

Fraud Fears in Internet Banking 1.Introduction Dissertation

Fraud Fears in Internet Banking 1.Introduction - Dissertation Example Banking industry is no different; banking operations and processes have become more accessible and convenient for the customers due to the introduction of internet banking. Banking operations are no longer restricted to the limited business hours of the bank, rather can be done at any time via the internet. However, this technology has also proved to make customers’ details and intellectual assets of the companies vulnerable in the presence of increasing security threats from hackers and intruders. Internet frauds related to the banking sector have become major concerns for customers around the world. Some of the most common online banking frauds have been discussed in the paper, along with the discussion of few real life instances of such crimes. 2. Internet Banking Internet banking offers a wide range of activities like balance inquiries, transfer of accounts etc. The acquisition and transfer of customer details and information on the internet makes the whole process vulnerable, along with the presence of internet scams that aim to steal the information of customers. Financial institutions have suffered great losses over the years by becoming victims of malicious activities of cyber criminals. Cicutti (2008) quoted the results of a research study by Association of Payment Clearing Services (Apacs); it concluded that instances of ‘cardholder not present’ are increasing around 37% after every year. The losses reached to an enormous amount of ?290m in 2007. These figures include fraudulent attempts via the internet, mail and phone. Few other figures have been reported by Financial Fraud Action UK in Sky News (2009); it pointed out that only first half of 2009 marked a 55% increase in the rate of internet banking frauds with the figur e of ?390m as compared to the figures for the year 2008. The alarming increment of internet banking crimes denote that the cyber criminals are getting more technology savvy who are adopting innovative technologies to overcome the security measures of the financial institutions to violate the privacy of the customers’ data. Internet banking has been widely accepted by customers due to its convenience. Spam Laws (2009) stated that around 45% of the 141 million grownups in US opt for online payment of their bills. Along with convenience, comes a huge price for the customers who prefer online banking. Spam Laws (2009) also provided the information that around 2 million Americans became victims of fraudulent actions in the year 2004, where customers were reported to suffer losses of around $1, 200 on average at every instance of fraud. After the analysis of the findings, it was concluded that the increasing number of fraudulent actions were known to have the source as online banki ng. 2.1 Types of Internet Frauds There are numerous types of internet banking frauds. Few of the most common ones have been discussed below: 2.1.1 Phishing/ Scam Emails The concept of phishing originates from two words; password and fishing. Zin andYunos (2005) explained that this technique is used to retrieve customer’s bank details by making the activity look like a regular procedure from his respective bank. Several types of information may be aimed to be extracted by the user, such as social security numbers, online banking credentials, credit card numbers etc. The sender might pose to be a bank officer who wants to update the customer’s data in the bank database. Recipients might reply to such emails with the understanding that it is a

Finance Concepts Assignment Example | Topics and Well Written Essays - 1000 words

Finance Concepts - Assignment Example If the estimated life of this project is 5 years and the Required Rate of Return is 10%, then we can also calculate the NPV of this project. If the NPV is also a positive value then we can safely estimate that this project will carry a good return, and the initial investment would be covered in 5 years. (Shim & Siegel, 2000). 2. Whenever one wants to finance a business, he can go for either debt or equity financing. Debt Financing carries lots of advantages and disadvantages. The major advantage of this form of financing is that you do not lose the ownership of your company. The lender also does not have any sort of share in the future business profits. Moreover, the interest on debt is deductible on the tax’s returns, hence reducing the actual cost of loan to the company. Finally, in the case of debt financing the company is not entitled to send their annual reports to various stakeholders. However there is always another side of a coin. Debt Financing carries the disadvantag e of at being repaid at some point in time. The interest cost can be very risky for a company, especially at the times of financial crisis. Other than that the collateral the company pledges against the loan can put extra pressure on the owner of a small venture. There is a reason why companies choose to invest in stock rather than bonds. The investment in bonds carries lower returns than stocks. Even though it is less risky, the return on stocks can be much more appealing. Investors can, in certain situations lose money on bonds, if they sell a bond when the price is lower from when they purchased it. The higher inflation rates over the investment return on bonds will hurt the purchasing power of the money the investors have (Petch, n.d.). 3. In the field of finance there is an important concept of risk-return trade-off. There is a general idea that prevails, the higher the risk the greater the return would be for an investment. The balance of the risk-return trade-offs, is hence a key factor in designing a proper financial and investment plan. Let us take an example of investment in stocks. In the case of a speculative stock because of its high risk, as an investor, you will expect a higher return. The same is the case with the working capital management. If you keep a lower inventory, there is a risk of running out of stock and hence you expect a larger return out of it (Shim & Siegel, 2000). 4. In finance, a Beta measures how volatile any security is to the market average. In layman terms, it measures the return of a security in a certain time period in relation to the overall market. Let us take an example, if a company has a beta of 2.0 in due time, this would mean that if the stock market would increase by 10%, our company’s stock will increase twice fold i.e. by 20% and vice versa. If the company has a 0 beta that means it is not affected by the market. A 0.5 beta would mean the company’s stock is half as volatile as the market, while a 1 beta would show that the company is as volatile as the market (Shim & Siegel, 2000). 5. When a risk occurs due to non-probabilistic events and not by pure chance, it is classified as