Expansionary Economic Policy Essay Example | Topics and Well Written Essays - 2250 words

Expansionary Economic Policy - Essay Example Fiscal policy stands for the power possessed by the federal government to tax as well as spend with an intension of achieving the goals of the economy. On the other hand, monetary policy deals with the important programs that make an attempt of increasing or decreasing the nation’s level of business activities through the legal regulation of money supply and credit. Despite the difference between the two, they both have a common goal of either decreasing or increasing the level of the business activities. A better understanding of the above two terms and what they stand for can be handled in the following subheadings. The Theory of Monetary and Fiscal Policy The theory of monetary and fiscal policy reveal that monetary policy stands for the whole process through which the central bank, government, and even the monetary authority are able to take control over three major aspects. The three major aspects include the money supply, interest rates that are meant to achieve the set objectives of stabilizing the economy, and availability of money in the economy. The monetary theory reflects on how one can be able to design the optimum monetary policy without interfering with the lives of other people. The theory goes further to give a suggestion that the monetary policy tends to rest on the relationship that exists between the price at which money can be borrowed, interest rates in an economy, and the total amount of supply of money (Persson 45-46). In addition, the money and fiscal policy make use of several tools in controlling the country’s economic growth, the exchange rates, as well as inflation. It must be noted that the exchange rates can only happen when there is another currency from a foreign country. However, if the currency tends to be under a monopoly of issuance, then there exist high chances that the regulation system might issue the currency through the existing banks, which might end up being tied to a central bank that can easily be con trolled by the authority in altering the money supply and influencing the interest rates. The theory gives an overview of the roles played by the policymakers in regulating the inflation in an economy. Policymakers play a big role in making time-to-time credible announcements that are aimed at informing the citizens on the changes in the interest rates and the amount of money available for borrowing. The theory reflects on the two ways in which the decision made by the policymakers can affect the inflation. In the first case, if firms and other consumers are made to believe that policymakers are working towards lowering the inflation, then there is a likelihood of a true anticipation of lower prices in the near future compared to the current ones. On the other hand, if employees tend to expect high prices in the near future, then there are high chances for employees to draw contracts that entail high wages. This is because employees aim at covering up the high prices in the economy through earning a relatively higher income. However, in an ideal economy, there is always a likelihood of introduction of a wage-setting behavior that is meant to solve such cases that have been mentioned above. The wage setting behavior attempts to balance the relationship between the employee and employer. In case the employees are receiving lower wages that cannot meet the demands of the high prices, then the

Answer the questions base on a company Essay Example | Topics and Well Written Essays - 2500 words

Answer the questions base on a company - Essay Example The evolution of strategic management can be better understood through real time systems and positioning systems. These are the basic strategic management tools used by the earlier companies. The strategic management process is the one which requires a basic conversation for turning goals and visions into act. It demands corporate culture which is intensive and adaptive. Lastly, the sense of corporate mission should be strong and should reach every corner of the organization, thus, it is touted as the destination. Answer b Ford has recently implemented various strategic management activities. Example 1 A clearly defined corporate mission statement is the first sign of the good and effective strategic firm. Though the corporate mission statement of the organization is extremely short, it is clearly explained through various sub-headings. Example 2 The company went for a lean management strategy in 2006. Ford started cutting costs, improving designs and increasing their efficiency leve ls to increase their overall brand appeal. In order to cover increasing pension costs and maintain the cash flow, the company introduced strategic operations into its management (Khan and Pillania 1510-1520). New and advanced machines took over and production increased dramatically. Example 3 Workforce diversity is another strategic management activity implemented by the firm. In terms of dealers, suppliers and employees, the organization has maintained diversity and inter-cultural infusion. This shows the adaptability of the organization and its commitment as well as ability to keep up with the pace (Alexander and Doherty 15-19). Answer c The mission statement of Ford is â€Å"One team, one plan and one goal† (â€Å"Mission and Vision†). One team represents the workforce of the car manufacturing brand. The company works together as a global and lean enterprise for leadership in automobiles as well as satisfaction of its employees, dealers, customers, suppliers, invest ors, council/union and communication. It is under a single plan that the company aims for aggressive restructuring in order to operate in a profitable manner and take control of the current demands. With one goal in mind, the organization expects to deliver growth which is profitable for all. The overall goal for the year 2014 is to create worldwide profitable growth. The company aims to cash on the changing business environment in the countries as well as markets where the company has established. Ford will be inventing research and development in order to find out the likes and changing perceptions of its target consumers. Accordingly, the company will be establishing strategies and tactics. The objective of the company for the year 2014 is to produce first class vehicles and establish itself as one of the finest and most preferred car making company across the globe (â€Å"Our Strategy†). 2. On corporate governance Corporate governance is a system created with the objectiv e of controlling and directing corporations around the globe. Answer a Three traditional roles of board of directors are: Providing continuity for the firm through setting up legal or corporate existence and representing the point of view of the organization to every interested and involved entity in the external environment. These include customers, investors, suppliers, governments, employees and communities. In order