M & A Coursework Example | Topics and Well Written Essays - 3000 words

M & A - Coursework Example The combination of two domestic companies is an important business and economic undertaking because in many instances, such will assure the survival of an entity in the face of changing competitive structures or politico-legal mandates pertaining to the industry (Vaara, 2001). Cross-border M&As, on the other hand, gain a special importance because they play a vital role in foreign direct investment (FDI), directly impacting upon the entry of additional equity in the host economy, and providing an additional source of income investment for the home company. Organizations are comprised of persons real and natural, with all their complexities and idiosyncracies. The human element will be a consideration that will permeate all aspects of the post- M&A integration process. For local companies, this means the combination of two organizational cultures into one. ... People, who are normally resistant to change, will naturally seek to enforce their own accustomed cultures, and resist the adoption of the other. Cross-border M&A is specifically defined as â€Å"an activity in which an enterprise from one country buys the whole asset or controlling percentage of an enterprise in another country (Zhu & Huang, 2007). In the process of cross-border mergers and acquisitions, the enterprises involved are prone not only to conflicts between their organizational cultures, but also their national cultures. This makes the problem of cultural integration more difficult, because national cultures are more closely equated with a sense of national pride and patriotism. Moreover, they often have profound religious or ethical implications more deeply ingrained in the psyche of a nation by centuries of social conditioning. The task of cultural integration of cross-border M&As, therefore, becomes double significant in that it seeks to create a new corporate culture out of two sets of organizational and national cultures, by harmonizing the synergistic elements and eliminating the conflicts (Zhu & Huang, 2007). The stages of mergers and acquisitions The merger or acquisition process is not a single event, but a series of stages that must be understood in order to determine the most effective manner by which integration can be carried out. This is because corporate integration is intimately related to the decision-making stage of the acquisition itself, not separate from it, and events and decisions during the intermediary stages influence the manner in which integration shall proceed. Tanure, Cancado, Duarte & Muylder (2009, pp. 138-142) identify four stages of the merger and acquisition process: 1. The motive behind the acquisition or merger This

The Integrated Solution Limited using the criteria of HKMA quality award program Essay Example for Free

The Integrated Solution Limited using the criteria of HKMA quality award program Essay Q.1: The Integrated Solution Limited (ISL) is a specialist in providing professional quality I.T. solutions to small and medium-sized enterprises (SMEs) in HK and southern China. There are several factors leading to the success of ISL today. The remarkable achievement of ISL started with its founder and Managing Director, Dr. Ricky LEUNG. Dr. LEUNG personally had in-depth understanding of the needs of manufactures in HK. He recognised that most of imported packages did not provide enough management information to them and no foreign vendors provided MRP system in HK. That is the gap where ISL successfully comes in. With the strong commitment from Dr. LEUNG, ISL has laid down a companys motto ISL is to build quality people, products and relationships and a mission statement ISL is to provide quality products and services towards better data integration and information management for manufacturers that strive to provide excellent products and services to its customers. In this connection, ISL has been very active in improving its products and services through continuous research, service quality improvements, and the changing needs and requirements of customers. Q2: The remarkable achievement of ISL shows once again that producing world-class quality is ultimately a matter of the heart more than the mind It is companies with such emotional pride in their products and with such heroic hopes for their customers that set the quality standards in every industry around the world said by Larry Farrel of the Farrel Company. Quality management has played a significant role in ISLs success. As mentioned previously, ISL has always commits to become the leader in providing professional quality I.T. solutions for SMEs in Asia Pacific. Quality management has always been their main focus in strategic planning, market positioning, and nearly every aspects. ISLs efforts in quality management has lets them successfully to built up an image of a total solution company with prestige quality, as the leading supplier of manufacturing software in Hong Kong by successfully differentiate it from its competitors, and is fast to become Hong Kongs showpiece in innovation and quality. Actually, Total Quality Management is a strategic weapon, which includes a broad set of processes, which helps ISL to enhance its competitive advantages. It is a basic belief that each day it can become better and that all employees are infected with the enthusiasm and religion of improvement. Thus, it accelerates the continuous improvement in products and services, and overall organizational performance. It also helps to develop a Roadmap to business excellence which has attained significantly higher performance levels, therefore, driven to their overall success. Q3: By applying and receiving the HKMA Award, ISL has achieved the following benefits: 1) Gain Competitive Advantage Sound Reputation Successfully Differentiate from its Competitors: ISL received the HKMA award in 1994 for its dedication to quality improvement and customer services. This awards brings the company public recognition for having achieved outstanding standards of quality and for having make a lasting commitment to the process of quality management. Thus, ISL is able to gain many competitive advantages that lead to its success in the IT industry. It not only helps ISL to successfully differentiate from its competitors, but also accelerates the continuous improvement, and gaining prestige reputation from the market. 2) Professional Productive Work Force by Empowerment, Teamwork, Recognition Training : Being a successful company, human resources, is definitely one of the most valuable resources.. ISL understands that keeping the staff growth means keeping the company growth. So, the Human resources development is also one of the focuses in companys strategic planning. As quality management lets ISL to realize the important of empowerment and teamwork, therefore, when ISL recruits new employee, they will measure their ability of teamwork, potential for growth and quality awareness instead of measuring their technical skill only. For the existing employee, ISL also encourage for their involvement. For example, they will have a regular meeting where all employees are welcome to give their own suggestion and opinions. Moreover, the company always tries to strengthen staffs technical skill and quality awareness through various training or seminar from outside experts. Furthermore, the company also empowers the employee and gives special awards to well-performed staff in order to enhance the employee satisfaction. All these efforts helps ISL to achieve outstanding operational results, such as improve in punctuality, reduce absenteeism due to sickness, lower staff turnover rate, faster technical support response time, better trainer quality, higher maintenance incomes, and faster invoice processing time, etc. 3) Clear Strategic Planning and Leadership : By applying and receiving the HKMA awards, ISL has benefits from a very clear strategic planning and leadership. It lets Dr. Leung, the company leader, to aware of the importance of quality, but also pushes him to make some changes in ISL in order to enforce the quality enhancement, such as restructured the company units to a supportive organization structure, and to form a Quality Committee from senior management to co-ordinate and organize quality efforts. Moreover, the HKMA award program ensures ISL to have a very clear goal in quality and performance. For example, at the beginning of each year, ISL undergoes an annual Extensive Strategic Planning Process to plan for the goal and the actions of the current year base on the customer and staff satisfaction and economic factors. It helps ISL to continuously improving in its quality of services and products and leads to its success. 4) Enhance Customer Satisfaction by Customer Focus : ISL has realized that customer satisfaction and a good reputation for quality are vital to the companys survival. Therefore, it uses many marketing tools such as Product Life Cycle (PLC), Product Space Map and GAP analysis to determine market opportunities, segmentation, moving trends and the market position of its product. It helps ISL to be more efficient and be able to continue to understand more about its customers needs and requirements and improve its product and services in order to improve its market position. For example, the amount of repeat sales has grow from 4% to 23% of the total sales from 1992 to 1994. This rapid grow in repeat sales demonstrates that the customer satisfaction of ISL has been improved, and there is pro-active account management and development of long-term relationships with customers in ISL. 5) Profit Maximization and Cost Efficiency : Quality management also benefits ISL financially by maximizing its profits and lets it spends its cost more efficiency. During the eight years before the company applied for the HKMA award, ISLs annual sales grow rapidly. For example, the annual growth rates were 50% or above throughout the period from 1987 to 1994. Besides that, since the company embarked on the TQM programme, profitability has also improved. Moreover, the improvement in various aspects, such as the production process, lets ISL to spend its cost more efficiency. 6) Accelerate Continuous Improvement : The HKMA helps to accelerate the improvement efforts. It helped to set a pace for the quality improvement efforts. It created an accountability that moved the organization faster and further than it could have done on their own. For example, concerning the product improvements, ISL is constantly upgrading it products and services. It also has to keep up its product development programme in order to maintain its competitiveness in the marketplace. Besides that, it also engaged in improving the quality of its internal operations in order to improve in its process. These help to demonstrate ISLs efforts to accelerate its improvement continuously. Q.4: The strengths and weaknesses of ISL in the current competitive environment are as follows: 1) Leadership : * Dr. LEUNG has strongly commitment in promoting quality/products to the industry and to the ISL. For the industry, seminars and articles on Quality Management given by Dr. LEUNG not only educate the public, but also act as outside pressure to push ISL to improve its quality. For the company, he has laid down a companys motto and mission statement stressing on quality products/services to its customers. * Furthermore, a quality committee chaired by Dr. LEUNG has been established to co-ordinate company-wide efforts on quality improvement. The terms of reference for the committee are specified, which includes setting up companys quality standards, developing long- to short-term quality plans, monitoring quality implementation progresses, tackling customer issues, and so froth. * ISL in 1994 established a 3 levels supportive organization structure including front line staff, managers and top management. This organizational structure provides a supportive skeleton from one level to another so as to facilitate the performance of subordinates. ISL also formed the RD Department focusing on product direction and acting as the catalyst for quality improvement. ? Although Dr. LEUNG from time-to-time participates in public activities, ISL itself and other senior staff have not paid much attention to address their public responsibilities and citizenship. 2) Strategy Planning : * To improve product/services quality, ISL has introduced an annual Extensive Strategic Planning Process. At the beginning of each year, the Quality Committee meets externally to examine customer satisfaction and review/access impacts from environmental factors, and internally to motive and satisfy ISL staff and minimize waste and unproductive work. ISL also has set up 5 quality and performance goals, including Product Leadership, Quality Leadership, Consultancy, Implementation and Technical Support. ? Human resources plan has not considered. Key performance indicators are also not considered for tracking the progress of action plan, not to say projecting organizations future performance. 3) Customer and Market Focus : * ISL has adopted a number of marketing tools such as Product Life Cycle, Product Space Map and Gap analysis to determine market opportunities, segmentation, trends and the market position of its product. To collect information from customers, departments of TS and Sales Marketing have constantly contact and visits their customers with the aim to explore possible areas for improving its products and services. ? Mechanism has not formulated to handle customers complaints promptly and effectively. ISL should group all complaints together and analyze it for further improvement. Moreover, ISL should obtain and analyze information and customer satisfaction about their competitors for benchmarks. 4) Information and Analysis : * ISL has introduced an integrated management system, PURSUIT, for its operational processes. A SQL tool, FLEXQL is employed to extract data to generate ad-hoc or routine management reports for the departments of Sales, TS and RD. To effectively use the data, the management adopt the concept of Management-By-Facts and, wherever practicable, make decisions on a factual basis. * Key performance has been constantly communicated to ISL staff, its customers and suppliers via a wide range of communication channels; Internally ISL rely on weekly colloquium, monthly staff newsletter, departmental meetings, annual report, display boards and emails, while externally they rely on user newsletters, press releases, customer visits and customer surveys. ? A system for ensuring the accuracy, reliability and security of data and information has not in place. 5) Human Resource Focus : * The management of ISL in 1994 recognized that exchanges of experience and information among staff and managers were informal, and tasks and functions were mainly performed by a single person. In this regard, ISL has introduced a daily Japanese-style morning meeting for reporting work progress, planning of the schedule, seeking assistance from colleagues with relevant experience, and presenting a topic by members on a rotation basis with assessment. Besides, ISL launches a program, Quality in Action (QIA), which based on facts and data and empowered its staff to respond quickly to customer needs. * All suitable candidates have had at least 2 interviews to judge their competence in interpersonal skills, quality awareness, and so on forth. In addition, TS and the 3D development departments have a work rotation scheme to ensure that everyone receives a mix of job functions. * ISL provides a company colloquium with attendance of all staff on every Friday morning for brainstorming, team building and training of theories, concepts and tools in quality management. Departmental meeting is another place where customer and operational issues can be resolved. Group sessions are also organized for sharing experiences and new ideas. * ISL sends staff to external training courses and provides an annual HK$6,000 education allowance to each employee for job-related external training courses. * ISL has put a system in place to maintain a high level of staff morale. The system consists of communicating changes with feedback, making use the companys supportive organizational structure, coordinating with top managements direction, and providing counseling and mediation. ISL also has a Social Welfare Committee responsible for organization of key annual events. Furthermore, the company put a smoke-free working environment policy in force. * Three front line departments have its own incentive scheme. Employees have an annual appraisal to determine their pay. Special awards would be given to those who have exceptional performance. ? ISL not places much attention on providing assessment methods or measures, like upward appraisal, to determine employees well-being and satisfaction. The company shall also consider formulating a system to ensure safety and health of employees at work. 6) Process Management : * ISL emphasizes the quality of its development process. All software projects are headed by senior software staff and developed in accordance with a software engineering cycle. Moreover, ISL follows the best practice guidelines in the industry by allocating sufficient time and effort for System Analysis and Final Testing stages. To meet customers special needs, ISD also offers a tailor-made software service and develops User Manuals, Technical Manuals, Implementation Guide, and Training Notes Exercises, and provides Customer Training Programme and Implementation Consultancy Services. * To promulgate continuous improvement, ISL regularly upgrades its products and services based on the feedback from listening to customers, getting in touch with the marketplace, and valuing input from staff. * ISL acts as a value-added reseller by organizing marketing and education event, meeting with vendors, and dealing of hardware purchases. 7) Business Results : * ISL has established a series of services and indicators to focus on customers; Firstly, hotline support logging system has been introduced to gauge the performance of technical hotline support. Secondly, ISL offers a one-day training programme to its customers. Trainees request to evaluate and give feedback for the effectiveness of programme. Thirdly, ISL measures the percentage of purchasing maintenance service and maintenance income to reflect the satisfaction of customers. Finally, ISL conducts full-scale customer satisfaction survey to assess the strengths and weakness of its operation. * ISL tracks its annual sales, profitability, amount of repeat sales and number of installation sites to measure the results of company and quality and customer satisfactions of customers. * ISL measures punctuality, absenteeism, staff turnover rate to evaluate staff morale and work attitude. All these indicators move positively since its inception. ? Although ISL has successfully boosted its sales revenue by 50% annually from 87 to 94 with exception of 93, the net profit margin does not grow as much as the sales revenue. It also noticed that the percentage of increment of the sales revenue has been declined from 95 to 97, as compared with the annual growth from 87 to 94. Q. 5: With the limitation of resources available to ISL, we are of a view that ISL should concrete their efforts to target on Small and Medium-sized Enterprises in both Hong Kong and southern China. ISL should modify its existing products to suit the special needs of the largest manufacturing sectors in Hong Kong and southern China. (i.e.: Toys, Garment, and Electronic Industries.) 1) Products : Looking ahead, the following products should be provided by ISL to its client. As there is a growing trend for user-friendly software, a new software system with Window/Novell/Web-based application will become a potential product of ISL. In addition, with the growing connection between Mainland China and the Hong Kong Special Administrative Region, industrial undertakings headquartered in Hong Kong and with manufacturing plants scattered in Mainland China are on the increase. Coupled with this growth, there is an increasing need for such undertaking having an integrated computer system. Development of an effective communication system that facilitates the connection and communication between offices at different locations will be a potential product for ISL. Furthermore, ISL should explore the feasibility of developing an ERP and Global supply chain management software in collaboration with QAD. As QAD has experience in developing such product, it may reduce the product development time and help ISL stay in the forefront and keep in pace with the logistics business proposed in Hong Kong. 2) Services : On top of its current services, ISL should provide free software to academic institutions for education and promotion purposes. ISL may also provide free-trial software with limited effective date and authority to potential customers and existing customers for evaluation and promotion purposes. Besides that, ISL may regularly organize free training courses to their potential users or customers. Q. 6: As more and more aggressive competitors (e.g. SAP, MPIX, Minx Symix) have launched their businesses in Hong Kong and China, ISL should consider the following actions to further improve their quality or services to its customers. Firstly, it should pursue China market by more empowerment and participating in joint venture or co-operation programmes with China firms. It helps ISL increase/improve its cash flow, distribution channel and technology. Secondly, it should further improve their software systems in order to maintain their market position. It is noteworthy that some features / functions of ISLs software systems are far from satisfactory as compared with similar products offered by their competitors. The limited power of Envision is a good illustration of this. Thirdly, by means of joint venture, ISL should exchange their technical skill with foreign companies. It also allows ISL to exchange its stock shares with various companies for improving cash flow within the company. Fourthly, in addition to its cooperation programmes with the City University of Hong Kong and the Hong Kong Productivity Council, ISL shall extend it to various Universities in China. As these institutions have first-hand and in-depth understanding of the needs in China, such cooperation programmes not only help ISL develop its products but also can be their executive arms to disturb new software systems to China. Finally, ISL should set up a website to introduce their company background and new products to all visitors (potential customers) and existing customers. It can also build up FAQ (Frequently asked Questions) to help existing customers to solve common problems. Moreover, as a means of advertising, it can let more people to recognize ISL throughout the world.

Theory of Mind Essay Example for Free

Theory of Mind Essay Within this TMA I will be discussing Theory of Mind and how it may have evolved in humans, using the Theory of Evolution to explain this. I will also be looking at what the adaptive function of Theory of Mind in humans may be. The adaptive function in this essay means the relative ability of a person to effectively interact with society on all levels and care for one’s self; affected by one’s eagerness to practice skills and follow opportunities for enhancement. Evolution is the procedure which modern organisms have descended from the earliest ancestors. Evolution is accountable for both the similarities and the diversity across all species. Essential to the process is genetic variation on which selective forces can act in order for evolution to occur. Evolution can also be described as descent with modification. Evolution occurs when there is a modification in gene regularity in a population over time. These genetic differences can be inherited and may be passed on to the subsequent generations. The main idea of evolution is all life on earth shares a common ancestor. Charles Darwin first proposed the theory of evolution after spending time on the Galapagos Islands. He developed the theory of evolution which would oppose the creation of man and imply that all species derived from common ancestors through natural selection. Natural selection is thought to be the main factor resulting in the diversity of species. Natural Selection is as stated by Barrett (2002) â€Å"The process whereby physical and behavioral characteristics which enable survival are passed onto descendants† (as cited in Clegg. 2007. Pg121). The disappearance of less suited gene traits and the survival of the better suited genetic traits led Darwin to reason that organisms had evolved over time, where the most advantageous characteristics of species’ are preferred and those organisms who demonstrate them survive to pass on their genes. Darwin believed that organisms had evolved to adapt to their environments. This allowed them to fill a niche in which they would be well suited to their environment and in turn increase survival chances. Darwins finches are an example of the way the species genetic traits have adapted for long term survival via their young. The beaks of the finches Darwin discovered have evolved to be best suited to their purpose. For example, the finches that eat grubs have a slim extended beak to poke holes into the earth and retrieve the grubs. Finches that eat fruits and buds would not be successful at this, as their larger beaks grind down food which gives them an advantage in situations where buds are the only food source for finches. Within humans many adaptations have occurred through Darwin’s idea of natural selection. â€Å"An adaptation is an evolved property of an organism, the original function of which adds to its fitness† (Clegg, 2007, p122). One of these adaptations is called Theory of Mind. Theory of Mind is â€Å"the ability to explain and predict the actions of both oneself and other† (Clegg, 2007, p133). To have Theory of Mind would allow humans to understand what another person feels and use that information to adjust their own actions Studies have been carried out on primates closely related to humans in the gene pool to try and understand the evolution of Theory of Mind. One observation completed by Whiten in 1997 was that of an ape who distracted another to keep the competitor from food which the original ape had seen (as cited in Clegg, 2007, p139). This ape’s deception may point to the ape possessing some Theory of Mind as it realised that the competitor would have d esired the food item also. This can also be related to modern humans as the ability to find food can also be a difficult task for some people such as the tribes who live in the deserts. This will attract a partner as it shows the ability to provide and survive, and will be passed through generations. Archaeological evidence can also be used to try to understand the evolution of Theory of Mind in our ancestors, when it fully appeared in Homo sapiens and its adaptive function. The appearance of archaeological art e.g. cave drawings, around 30,000 years ago shows the humans at the time had the ability to imagine things which allowed them to create the artwork. With the ability to do this it can be said that the people who drew the artwork possessed Theory of Mind. These cave drawings may have been used to attract a partner, which means the genes for imagining and creating the artwork would have been passed to their subsequent children. This adaptation would provide the next generation of humans with the ability to imagine and therefore possessing a quality of Theory of Mind. When this adaptation was passed on and used by the children it would have allowed them to create partnerships and their offspring would also have the same trait. This would allow the gene to become an advantage and therefore be passed on through the generations and continue until the Homo sapiens of today. The ability to imagine can still be used today as a means of attracting a partner. Theory of Mind also allows us to interact with success with other humans and how to understand how someone is feeling from their actions. With the evidence and explanations provided Theory of Mind is an advantage to modern humans as its adaptive function may be to allow individuals to survive longer and therefore create more offspring with the desirable characteristic to suit the environment into which it is born. This allows the Homo sapiens to continue to survive upon the earth. References Clegg, H (2007). Evolutionary Psychology. In D. Miell, A. Phoenix, K. Thomas (Eds), Mapping Psychology (2nd ed., pp.105-160). Milton Keynes: The Open University

Exchange Rate and Inflation in Pakistan Economy

Exchange Rate and Inflation in Pakistan Economy Inflation exchange rate are two main factors of macro-economics. Inflation is an increase in the level of prices of goods services in an economy by the passage of time. Exchange rate is very important factor in economic which impact imports exports of country. A country does not always want the exchange rate to fluctuate because an exchange rate influences the levels of its imports exports, which are the component of fiscal policy. Policy makers want to hold rate at a particular level or within a certain range in order to achieve given domestic policy goals related to the level of growth of GDP. In the perfect mobility the exchange rate movements and an adjustment of goods market is relative to asset market and consistent expectations. The extends that output responds to a monetary expansion in the short run, this acts as an effect on exchange depreciation which lead to an increase in interest rates (Dornbusch, 1976). There are three types of ways which gives stickiness in prices, the prices set by the firms in that currencies, the firms set the prices for currencies of consumers, or firms set the prices in the currencies of producers (Engel, 2001). When the exchange rates changes, the changes appear in the relative prices and make to generate additional uncertainty for equilibrium in markets. However, there is also defining that the changes in terms of trade play the larger role of changes in the exchange rates which affect the variability of exchange rates (Stockman, 1980). Inflation is one of the key indicators of the country and provides important information on the state of the economy and sound macroeconomic policies that govern it. Inflation is the production of the expenses of manner of things arise which leads to the advancement of the last in the price of meals. For example, if the matter is hardy and this leads to the increment of the price of the production of the costs of increasing, and in turn this leads to increasing prices to keep the crowd his profits. The discretionary nature of the existing monetary policy in Pakistan is inflation, and it is targeting to hit on the Pakistani economy by focusing attention on the monetary policy. So the government of Pakistan is to make monetary policy more transparent for achieving the explicit goal, and decreasing the inflation. Therefore, it is increasing the public understanding of the strategy of central bank to deliver the target, so the State Bank of Pakistan helps to provide an anchor for inflati on expectations in the economy. The State Bank of Pakistan (SBP) has achieving a low rate of inflation in a high priority, and also aims to support the national country objectives of Pakistan to meet the economic diversification and competitiveness in the form of export from the world. 1.2 Problem statement This study is to examine the impact of exchange rate on inflation in Pakistan economy. 1.3 Hypothesis H1: The Exchange rate explains the inflation. 1.4 Outline of the Study The variability of industrial production output higher in the regime of fixed exchange rates instead of regime of flexible exchange rates (Flood Hodrick, 1986). The effect of consumption goods purchases by the government is not the private utility, but per capita real government expenditure are the composite of individual consumption of goods. So notice that the demand of money depends on consumption of goods rather than income and that is the important distinction of closed economies (Obstfeld Rogoff, 1995). Pakistan major import is crude oil which is purchased in dollars. If foreign exchange rate increases, it has increased the cost of oil that has adverse impact on the economy of Pakistan. Inflation is also caused by international loans and the national debt. As nations borrow money, have to deal with the interest that the final prices increase as a way to keep up with debts. The main problem of Pakistan is external debt, which has altered the economic balance. The most immediate effect of inflation is the declining purchasing power of the rupee and its depreciation. This study has been helpful for economic policy makers, foreign investors, economic analysts, business students who are interested in macro-economics studies. This study identifies how two macro-economic factors are related with each other. 1.5 Definitions Variables: For this study the following variables have utilized:- Exchange Rates à ¢Ã¢â€š ¬Ã¢â‚¬Å" Independent Variable: The exchange rates are foreign exchange rate between two currencies. Every country has a foreign exchange market and is one of the largest markets in all countries of the world. It converts 3.2 trillion USD currency conversion. It has two types i.e. fixed and floating exchange rates. Meese and Rogoff (1988), it depends on fundamentals such as money supplies, real incomes, interest rates and inflation. Listen Read phonetically Dictionary View detailed dictionary Inflation à ¢Ã¢â€š ¬Ã¢â‚¬Å" Dependent Variable: Inflation has increased the level of prices of commodity, goods and services in an economy by the passage of time. Price inflation measure is the rate of inflation, the annual percentage change in general price index (usually the Consumer Price Index) over time. Effects of inflation on the economy have manifold and simultaneously positive and negative. Negative effects of inflation include a decrease in the real value of money and other monetary items over time, uncertainty over future inflation which discourages investment and savings, and high inflation leads to shortages of goods if consumers begin hoarding out of concern that prices increase in the future. Positive effects include a development of economic recessions, and debt assistance by reducing the real level of debt. CHAPTER 2: LITERATURE REVIEW The analysis of the monetary determinants of inflation is of obvious interest for the nations that pursue a policy of inflation targeting. This study focuses on Pakistani economy that is currently following an Inflation targeting approach or did so in the recent past. Currency stability plays an important role for the monetary authorities in this economy. Exception of real money growth rule is included in the estimation of Phillips curves for the four economies Bayesian model averaging (McCallum, 1999). Entrepreneurs seek stability in the course says that keeps the price of imported items from growth due to rupee depreciation, which is not only support the economy in general, but also producers who use huge amounts of imported cases in the production of exportable surplus. Since the start of this fiscal year, while the rupee has lost about 2.5 percent of its value beside the dollar and its depreciation rate is unlikely to accelerate in the coming months due to continued inflow of foreign capital and funds. Also include the support of IMF, partial release of the fund, a coalition of U.S., which is part of its payment obligations by the Friends of Democratic Pakistan, extremely strong inflow of return of foreign workers of portfolio investments and possible raise up in exports and foreign direct investment in the third quarter of fiscal year. The current stability of the rupee has helped to contain imported inflation and the weakening of inflationary expectations. Bankers expect that trend continues throughout this financial year, a national unit is depreciated more than 7.0-7.5 percent during the entire fiscal year, against 19.5 percent last year. Businesses verify that the bankers are the forward currency cover in accordance with this expectation. What Pakistan needs today is not a platform to launch an à ¢Ã¢â€š ¬Ã…“economic revival programà ¢Ã¢â€š ¬? but what people need is an actual à ¢Ã¢â€š ¬Ã‹Å"economic revival.à ¢Ã¢â€š ¬Ã¢â€ž ¢ The main problem of Pakistan is the foreign debt which has risen to unmanageable proportions in the last decade and the repayment of which has created turbulence in external balance of Pakistan to such an extent that it does not meet its minimum necessary development requirements. At present Pakistan cannot survive without fresh borrowings from foreign donor agencies. As emphasized by Choudhri and Hakura (2006), an important policy debate for the contemporaneous monetary and exchange rate policy implementations is to reveal the degree to which changes in exchange rates or import prices impact or pass-through into domestic consumer prices. Presently there are three rates of exchange i.e. the bank rate, the inter bank rate and the open market rate. The overall effect on the foreign exchange rates should not be more than 5 to 6 per cent as the increased inflow of foreign exchange have neutralize the effect of the increased demand of private imports. If the foreign exchange earners and remitters keep on getting a fair exchange rate for earnings, it is visualized that in the next few years exports can touch the $15 billion mark and overseas Pakistani remittances can fetch $5 billion. It was concluded that the exchange rate feed shock on domestic inflation, first at the level of prices of the manufacturer and then the level of consumer prices and the im pact of shocks on the variables of price the various stages of the supply is different. The purchasing power parity theory doctrine means different things to different people. There are two versions of this theory that is called the à ¢Ã¢â€š ¬Ã‹Å"absoluteà ¢Ã¢â€š ¬Ã¢â€ž ¢ and the à ¢Ã¢â€š ¬Ã‹Å"relativeà ¢Ã¢â€š ¬Ã¢â€ž ¢ interpretation. The first version of purchasing power theory calculated as a ratio of consumer goods prices for any country that has tended to the equilibrium rates of exchange. In the second version of relative interpretation the rate of exchange rate have been determined between the two countries and quoted with general levels of prices of two countries. This version amend the international trade theory which have been the part of PPP, in which the non-traded goods (services) has been introduced, but the advantage is greater in regards of traded goods than non-traded goods, because of the assumptions of marginal rates of transformation. The correlation among purchasing power parity and exchange rates provides the international comparison of national incomes and living standards (Balassa, 1964). Lawrence (1976) gave another review of this purchasing power parity theory. It has define two applications in economics, the first application use of the conversion factor to transfer the data in one national way to another. The use of PPP is mainly the body of (index number theory) and applications of GDP that have improved over the years and path breaking studies in the area continue to appear. The second application of PPP did not have the widespread acceptance, which has remained the unsophisticated applications. Stockman (1980) develops the model of determination of prices of goods and exchange rates. The changes in commodity prices due to supply and demand affect the change in exchange rates by purchasing power parity deviations.The changes in exchange rates have failed to resemble the changes in prices of goods, because exchange rates more volatile than prices levels and inflation rates. The study proposes the equilibrium of exchange rates behavior and different international goods that have been traded. This relationship cannot exploited by the government, because greater the changes in terms of trade the larger the changes in exchange rates variability. The deviations from PPP persists that variation of exchange rates more than ratios of price indexes. The results found the two interpretation of the relationship between exchange rates and terms of trade. In the first, the causes that affect the changes in exchange rates also affect the change in terms of trade because prices of goods do not adjust to clear the markets. This interpretation also found in the research of Dornbusch (1976), and Isard (1977), the analysis formally differentiates the system with respect to exchange rates and allow prices to change but not the changing in asset stocks. The interpretation presented the elasticity approach of the foreign exchange market and the relation between the trade and exchange rates. Real supply and demand shocks affect prices and the derived demand of exchange rates. These changes in demand for foreign exchange result the supply and demand shocks and that should affect the equilibrium of exchange rates. In second interpretation the expected rate of change of exchange rates revealed on the forward foreign exchange market. This should be related the anticipated change in the terms of trade and the inflation differentials. A persuasive argument about the level of exchange rates is only associated with not causes of the relative prices changes. Bilson (1985) gives the empirical findings about macroeconomic and flexible exchange rate of the U.S dollar related to PPP theory. From the perspective of this research, the sluggish price adjustment in the commodity markets resulted in increased variability in exchange rates. For the demonstration of result it is important because the instability of floating exchange rate is due to the inherent differences between commodity and foreign exchange markets. The determination of the expected future rate is impossible, because it is more difficult to reject the forward parity condition. The major part of the forward parity is the variation in the premium is due to the forecast. The object of this study is to determine that if the forward parity failed is the cause of instability in the same way that the failure of purchasing power parity. The findings develop that currency risk premium is the important factor relative to floating rate system, and movement in the exchange rate are dominate d by the non speculative activity and it has the adverse effect on world economy. Meese and Rogoff (1983) analyzed the outcome of sample forecasting accuracy on various models. The study estimated the horizons of the dollar with different country currencies, like Dutch mark, Japanese yen, and Britain pound that traded to weight the dollar exchange rates. It has also studied the flexible exchange rates with the monetary models of sticky price, so the model of sticky price, which incorporates the current account. The first model is structural models in which it requires to generate the forecasts of exchange rates and explanatory variables. It contains the explanatory power, but it is predicted badly because the explanatory variables are difficult to predict. The second is the univariate time series model in which it identifies a variety of prefiltering techniques involves differencing, de-seasonalizing and removing time trends. The relative performance of these techniques is of interest in itself. The third model use is the random walk model. It is also linked with this univariate time series model. It is used as the predictor of the current spot rate with the entire future spot rate, and it requires no estimation. In this study the performance of estimated univariate time series models or candidate structural model is no good instead it is worst. From a methodological stand point the view that the outcome of sample model fit is an important criterion when evaluating exchange rate, but the estimation of out of sample is failure with time series models that are well approximated the major country exchange rates. Feinberg and Kaplan (1992) evaluated and interact the real exchange rates index expectations is developed and used to explore the role of determination on domestic producer prices. The fact that time path of the exchange rate has directly affected the input costs, and the price of substitutes strongly. To examine the links between both actual and anticipated movements in the dollar and relative domestic producer prices, it chooses to analyze price responses to real exchange rate changes. The effect is dependent on the nature of substitutability between imports and domestic goods. The major finding is that the period of appreciation and depreciation over the past 10 years to inhibit the pass through in to domestic prices. In depreciation the market share to enjoy the continued good times kept prices other than expected. The theory of optimum currency areas, which is usually presented by the other name called flexible exchange rate system, but it is proponent as a device of depreciation that takes place of unemployment when the balance of payment is deficit and appreciation when it replaces inflation when it is surplus. The problem can be exposed and more revealed by defining a currency area within when exchange rates are fixed. Three answers can be given, first certain parts of the world are going through the process of economic integration, so new experience can be made and what constitutes the optimum currency area can be given the meaning of these experiments. Second those countries that have flexible exchange rates are likely to face problems with the theory of optimum currency areas, so these do not coincide the optimum currency areas with the national currency. Third the idea that illustrates the functions of currencies which have been treated in economic literature, and sometimes neglected in the problems of economic policy. In the currency area, countries with different currencies including national country currencies interact pace of employment in deficit, because there is the haveingness to inflation by the surplus countries. The argument for flexible exchange rate system is based on national currencies, and is valid about mobility of factor, so if it is high in the country and low in the foreign countries, the flexible exchange rates system on home country currencies has to work effectively. The concept of optimum currency area has practically applicable only in those areas, where the state has the political organization in the country. The factor mobility is most considered and is more relative rather than absolute concept, with both industrial and geographical factors. It is likely to change the alterations with time over time in conditions, with the conditions of political and economic stability. Money is the convenience that restricts the optimum number of curre ncies, so in terms of this argument the optimum currency area which is composed in number of countries (Mundell, 1961). In another review, the author defines the stabilization of capital mobility policy under the exchange rates which is fixed and flexible in the currencies markets. It concerns the theoretical and practical approach of the increased mobility of capital. Obstfeld and Rogoff (1995) analyses the global macroeconomic dynamics to supply framework based on competition and nominal prices. The effects of macroeconomic policies on output and exchange rates have not been yet persuaded to abandon. The framework which integrated exchange rates dynamics and current account yields is a new perspective, it realize that when prices are sticky the government should spend on shock raises short run output and long run output. The assumption is that home and foreign government purchases the consumption goods that do not directly affect the private utility, but the per capita real government consumption expenditure is a composite consumption of individual goods. It explains that the composite consumption for the services is to balance the opportunity cost and notice that the money depends on consumption rather than income, that distinction is more important in closed economies. The results of this study develop framework that give new foundations about some of the fundamentals problems in international finance. It realizes that the existing Keynesian model is incomplete to offer a satisfactory treatment of exchange rates, output and the current account, but the model which is used in this study is more complex, because it yields simple and intuitive insights of monetary and fiscal policies. It can be extended in a number of dimensions, including non traded goods, market behavior, government spending, and labor market distortions and so on. It goes beyond the essentially statistical approach that handles the current account and exchange rates issues, most importantly this approach allows to analyze the welfare implications of policies. Melvin (1985) has regarded and focused that how the choice of an exchange rate system can affect the stability of the economy. The appropriate nature of the exchange rate system has differed of the disturbance to the economy. It presented the evidence that indicate that the approach is more consistent according to practice by actual country. The other approach is to reach the desirable price stability, in which some mechanism tells the floating rates superiority has become less in the face of monetary shocks. It finds that the flexibility in exchange rates depends not on openness and less important in the mobility of capital, but its positive effects were found for the economic development. The purpose of this study is to consider the determinants of exchange rates system choice, which indicates the theoretical approach with the country choices. The result found that the choice of an exchange rate system has the role of the disturbance to the economy. It suggests that the money shock s are the key of exchange rate system choice in an economy, in which it seeks to minimize the fluctuations in the country price levels. It also suggests that the greater the price shocks the more is a float, so it affects greatly domestic money shocks. Lothian and Taylor (1996) examine the real exchange rate behavior, and explain the variations in sample of stationary univariate equations in real exchange rates. The study investigates the additional insight in the exchange rates behavior that can be gained by considering the floating rate from the perspective of the data. These issues can be best understood on the subject of real exchange rates stability among the currencies of the major developed countries. Some of the pre-float studies support the fairly stable exchange rates in the long run. Subsequently, Dornbusch (1976), and Frenkel (1981), gave largely as the result of studies published, and reject the hypothesis of random walk performance of real exchange rates. The PPP shows the empirical movements in real exchange rates were highly persistent and effective. Although the PPP is reject the hypothesis of non-stationary behavior of exchange rates in long run. The result of this study shows that the longest span of two countrie s exchange rates are significantly mean reverting. The first model result indicates the 80 percent of the variation in the exchange rates of the history data of two countries. By using of another model, the results explaining the performance of remarkably well in the floating, so that this model produce better forecasts of the actual exchange rates. In line with recent studies, it fined that this process of mean reverting is quit slow, with estimated adjustment of data. In the long run the PPP equilibrium is remaining a useful empirical approximation. Gerlach (1988) examine the dynamic interrelationship between innovations in monthly industrial production in a set of economies, specifically this study attempt the output fluctuations that have been correlated during the periods of fixed and flexible exchange rates. The current has to manage exchange rates flexibility that has reduces the interdependence across countries. It should follow the recent article of Flood and Hodrick (1986) in which it is argued that the variability have been higher during a regime of fixed exchange rates instead of flexible exchange rates, but the conclusion of author is striking so sharply. The results of this study of multiple country output movements under fixed and flexible exchange rates are clear. The variances of growth rates should be higher in the flexible exchange rates and in the fixed exchange rates periods. These variances are statistically significant related to the degree of openness and national income. Thirdly the output movements are co rrelated across countries under exchange rate regime, particularly the co movements in output are more important in the business cycle frequently during the recent years of managed exchange rates flexibility. CHAPTER 3: RESEARCH METHODS 3.1 Method of Data Collection The Data of Consumer price index (Inflation) has been collected from federal bureau of statistics while the data of exchange rate has been collected from Pacific Exchange Rate Service, both are the secondary, published source of data. 3.2 Sampling Technique The sampling technique that has been applicable is à ¢Ã¢â€š ¬Ã…“convenience samplingà ¢Ã¢â€š ¬? as it is easily accessible to collect the relevant information from the source and it is inexpensive and hence, gets a gross estimate of the results. (What is The Advantage of Convenience Sampling, 2007-2010). 3.3 Sample size The sample size is selected on the basis of limitations and scope of the research therefore, Last 54 years i.e., 1947 à ¢Ã¢â€š ¬Ã¢â‚¬Å" 2010, data of inflation and exchange rate is decided to be examined. 3.4 Research Model developed From the above defined and explanations of both the dependent i.e. inflation and independent i.e. exchange rates variables and also discussing the effects of exchange rate on inflation and how it have affects on economic of a country. In this study first analysis is the correlation between these two variables, and identifies the significant relationship. Then it analyzes and evaluates the empirical investigation in regression model as a statistical tool. The simple regression model which can be defined in the equation that represented below: Inflation = ÃŽÂ ²Ãƒ Ã‚ ¾ + ÃŽÂ ²(exchange rate) + ÃŽÂ µ Whereas, ÃŽÂ ²Ãƒ Ã‚ ¾ = the intercept of the equation. ÃŽÂ ² (exchange rate) = the changing coefficient of exchange rate. ÃŽÂ µ = the error term of the equation. From the above explained model, the study develop the following estimation and used for the establishment of the model. Therefore, all the compatible data has entered in to SPSS for statistical analysis. 3.5 Statistical Technique The statistical test that has been applied is single linear regression. This is because only one independent variable and one dependent variable to be used in this research. Frankel (1979) defined that most of the recent work on floating exchange rate goes under the name of the monetary or asset view. The exchange rate is moving to equilibrate the international demand for assets, rather than the international demand for the flow of goods. But with the asset view there is à ¢Ã¢â€š ¬Ã‹Å"Chicago Theoryà ¢Ã¢â€š ¬Ã¢â€ž ¢ in which assumes that prices are perfectly flexible. As the consequences when nominal interest rate changes, it has also reflect the changes in expected inflation rate, so as the domestic currency expected to lose value through inflation and depreciation. This is the rise in the exchange rates and gets the positive relationship between positive exchange rate and inflation. CHAPTER 4: RESULTS 4.1 Findings and Interpretation of the result The simple linear regression technique is used to determine the explanation of dependent variable i.e. inflation due to independent variable i.e. exchange rate. The analysis of the result is defined below: Table à ¢Ã¢â€š ¬Ã¢â‚¬Å" 4.1 Model Summary Model R Square Adj. R Square F Sig. 1 .226 .211 15.207 .000 The table à ¢Ã¢â€š ¬Ã¢â‚¬Å" 4.1 shows that the regression model is best fit to predict as F test value is significant. The variation of regression model is explained by 22.6% i.e. the change in inflation is 22.6% by the exchange rate. Table à ¢Ã¢â€š ¬Ã¢â‚¬Å"4.2 Coefficients Model Un-standardized Coefficients Standardized Coefficients T Sig. B Std. Error Beta 1(Constant) Exchange Rate 121.725 .794 6.887 .204 .476 17.673 3.900 .000 .000 Table à ¢Ã¢â€š ¬Ã¢â‚¬Å" 4.2 the coefficients results show that there is the positive affiliation between exchange rates with related to inflation in Pakistan. The results reflect that the exchange rates beta has the positive value and the T-value of both the variables is significant statistically at 0.05. From the above applied regression model, the result concludes in the way that it explains the relationship of both the dependent and independent variables significantly. The Inflation and exchange rates result shows that the beta value of the variable and T-value is significant at the 0.000 level. So the results conclude that the exchange rates value should significantly play its role in the relationship with related to inflation, but the exchange rates should not individually play a significant role in the relationship with inflation. The hypothesis is not rejected and that the exchange rate explains the inflation by 22.6%. The equation of regression model is written below: Inflation = 121.725 + 0.794 (exchange rate) + ÃŽÂ µ 4.3 Hypothesis Assessment Summary Hypothesis R Square F Sig. Regression Coefficient ÃŽÂ ² T Empirical Conclusion Exchange rate explains inflation. .226 15.207 P .794 3.900 Accepted The hypothesis of this study is that exchange rate explains the inflation, which is being accepted and exchange rate is explaining inflation by 22.6%. These findings support to recent theories that suggested the foreign exchange market efficiency with the existence of risk at equilibrium. Wihlborg (1982) examined the relation of interest rates, exchange rate and currency risks in this study. It identifies the test which empirically shows the impact of currency on interest rates and exchange rates. In this study there are three different ways in which the importance of currency risks for interest rate and exchange rate determination. The results presented here that substantiate the changes in the level of currency risk have a non-negligible impact on the changes of exchange rates and on rates of interest of relative between currencies. CHAPTER 5: CONCLUSION, DISCUSSIONS, IMPLICATIONS AND FUTURE RESEARCH 5.1 Conclusion This study is concluded to examine the dependency of exchange rate on inflation by using the data of consumer price index (CPI) as inflation and the data of exchange rate on yearly basis. The result of this study is highly significant so that the hypothesis of this study is not rejected. The result shows that 22.6% variation in inflation is due to the exchange rate in Pakistan. The analysis of this study also shows that if exchange rate becomes zero, the inflation exist to some extent. For example, if one unit of exchange rate increases, the inflation increases only by 0.794 times. 5.2 Discussions This study has applied exchange rate as independent variable and consumer price index (CPI) as dependent variable. For the availability of data, all the data should be available on daily monthly and yearly basis, but the data is used in order to consistent as yearly basis. The regression model has been formulated for these variable relationship investigations. The study developed the hypothesis that the exchange rate explains the inflation in Pakistan, and the findings are supported by the analysis done by Balassa (1964), Meese Rogoff (1983), Frankel (1979), and Mc Callum (1999) etc. 5.3 Implications and The result also accompanies that the exchange rates are the strength of character of foreign exchange market in Pakistan, and it should effect on each of the related variables as an inflationary basis. Therefore the State Bank of Pakistan and Government officials should realize the role of exchange rates in the economy and try to maintain exchange rates to stop or decrease the consumer price index in Pakistan, so that the price range of every thing should be in range of common men. Also Government should addres Exchange Rate and Inflation in Pakistan Economy Exchange Rate and Inflation in Pakistan Economy Inflation exchange rate are two main factors of macro-economics. Inflation is an increase in the level of prices of goods services in an economy by the passage of time. Exchange rate is very important factor in economic which impact imports exports of country. A country does not always want the exchange rate to fluctuate because an exchange rate influences the levels of its imports exports, which are the component of fiscal policy. Policy makers want to hold rate at a particular level or within a certain range in order to achieve given domestic policy goals related to the level of growth of GDP. In the perfect mobility the exchange rate movements and an adjustment of goods market is relative to asset market and consistent expectations. The extends that output responds to a monetary expansion in the short run, this acts as an effect on exchange depreciation which lead to an increase in interest rates (Dornbusch, 1976). There are three types of ways which gives stickiness in prices, the prices set by the firms in that currencies, the firms set the prices for currencies of consumers, or firms set the prices in the currencies of producers (Engel, 2001). When the exchange rates changes, the changes appear in the relative prices and make to generate additional uncertainty for equilibrium in markets. However, there is also defining that the changes in terms of trade play the larger role of changes in the exchange rates which affect the variability of exchange rates (Stockman, 1980). Inflation is one of the key indicators of the country and provides important information on the state of the economy and sound macroeconomic policies that govern it. Inflation is the production of the expenses of manner of things arise which leads to the advancement of the last in the price of meals. For example, if the matter is hardy and this leads to the increment of the price of the production of the costs of increasing, and in turn this leads to increasing prices to keep the crowd his profits. The discretionary nature of the existing monetary policy in Pakistan is inflation, and it is targeting to hit on the Pakistani economy by focusing attention on the monetary policy. So the government of Pakistan is to make monetary policy more transparent for achieving the explicit goal, and decreasing the inflation. Therefore, it is increasing the public understanding of the strategy of central bank to deliver the target, so the State Bank of Pakistan helps to provide an anchor for inflati on expectations in the economy. The State Bank of Pakistan (SBP) has achieving a low rate of inflation in a high priority, and also aims to support the national country objectives of Pakistan to meet the economic diversification and competitiveness in the form of export from the world. 1.2 Problem statement This study is to examine the impact of exchange rate on inflation in Pakistan economy. 1.3 Hypothesis H1: The Exchange rate explains the inflation. 1.4 Outline of the Study The variability of industrial production output higher in the regime of fixed exchange rates instead of regime of flexible exchange rates (Flood Hodrick, 1986). The effect of consumption goods purchases by the government is not the private utility, but per capita real government expenditure are the composite of individual consumption of goods. So notice that the demand of money depends on consumption of goods rather than income and that is the important distinction of closed economies (Obstfeld Rogoff, 1995). Pakistan major import is crude oil which is purchased in dollars. If foreign exchange rate increases, it has increased the cost of oil that has adverse impact on the economy of Pakistan. Inflation is also caused by international loans and the national debt. As nations borrow money, have to deal with the interest that the final prices increase as a way to keep up with debts. The main problem of Pakistan is external debt, which has altered the economic balance. The most immediate effect of inflation is the declining purchasing power of the rupee and its depreciation. This study has been helpful for economic policy makers, foreign investors, economic analysts, business students who are interested in macro-economics studies. This study identifies how two macro-economic factors are related with each other. 1.5 Definitions Variables: For this study the following variables have utilized:- Exchange Rates à ¢Ã¢â€š ¬Ã¢â‚¬Å" Independent Variable: The exchange rates are foreign exchange rate between two currencies. Every country has a foreign exchange market and is one of the largest markets in all countries of the world. It converts 3.2 trillion USD currency conversion. It has two types i.e. fixed and floating exchange rates. Meese and Rogoff (1988), it depends on fundamentals such as money supplies, real incomes, interest rates and inflation. Listen Read phonetically Dictionary View detailed dictionary Inflation à ¢Ã¢â€š ¬Ã¢â‚¬Å" Dependent Variable: Inflation has increased the level of prices of commodity, goods and services in an economy by the passage of time. Price inflation measure is the rate of inflation, the annual percentage change in general price index (usually the Consumer Price Index) over time. Effects of inflation on the economy have manifold and simultaneously positive and negative. Negative effects of inflation include a decrease in the real value of money and other monetary items over time, uncertainty over future inflation which discourages investment and savings, and high inflation leads to shortages of goods if consumers begin hoarding out of concern that prices increase in the future. Positive effects include a development of economic recessions, and debt assistance by reducing the real level of debt. CHAPTER 2: LITERATURE REVIEW The analysis of the monetary determinants of inflation is of obvious interest for the nations that pursue a policy of inflation targeting. This study focuses on Pakistani economy that is currently following an Inflation targeting approach or did so in the recent past. Currency stability plays an important role for the monetary authorities in this economy. Exception of real money growth rule is included in the estimation of Phillips curves for the four economies Bayesian model averaging (McCallum, 1999). Entrepreneurs seek stability in the course says that keeps the price of imported items from growth due to rupee depreciation, which is not only support the economy in general, but also producers who use huge amounts of imported cases in the production of exportable surplus. Since the start of this fiscal year, while the rupee has lost about 2.5 percent of its value beside the dollar and its depreciation rate is unlikely to accelerate in the coming months due to continued inflow of foreign capital and funds. Also include the support of IMF, partial release of the fund, a coalition of U.S., which is part of its payment obligations by the Friends of Democratic Pakistan, extremely strong inflow of return of foreign workers of portfolio investments and possible raise up in exports and foreign direct investment in the third quarter of fiscal year. The current stability of the rupee has helped to contain imported inflation and the weakening of inflationary expectations. Bankers expect that trend continues throughout this financial year, a national unit is depreciated more than 7.0-7.5 percent during the entire fiscal year, against 19.5 percent last year. Businesses verify that the bankers are the forward currency cover in accordance with this expectation. What Pakistan needs today is not a platform to launch an à ¢Ã¢â€š ¬Ã…“economic revival programà ¢Ã¢â€š ¬? but what people need is an actual à ¢Ã¢â€š ¬Ã‹Å"economic revival.à ¢Ã¢â€š ¬Ã¢â€ž ¢ The main problem of Pakistan is the foreign debt which has risen to unmanageable proportions in the last decade and the repayment of which has created turbulence in external balance of Pakistan to such an extent that it does not meet its minimum necessary development requirements. At present Pakistan cannot survive without fresh borrowings from foreign donor agencies. As emphasized by Choudhri and Hakura (2006), an important policy debate for the contemporaneous monetary and exchange rate policy implementations is to reveal the degree to which changes in exchange rates or import prices impact or pass-through into domestic consumer prices. Presently there are three rates of exchange i.e. the bank rate, the inter bank rate and the open market rate. The overall effect on the foreign exchange rates should not be more than 5 to 6 per cent as the increased inflow of foreign exchange have neutralize the effect of the increased demand of private imports. If the foreign exchange earners and remitters keep on getting a fair exchange rate for earnings, it is visualized that in the next few years exports can touch the $15 billion mark and overseas Pakistani remittances can fetch $5 billion. It was concluded that the exchange rate feed shock on domestic inflation, first at the level of prices of the manufacturer and then the level of consumer prices and the im pact of shocks on the variables of price the various stages of the supply is different. The purchasing power parity theory doctrine means different things to different people. There are two versions of this theory that is called the à ¢Ã¢â€š ¬Ã‹Å"absoluteà ¢Ã¢â€š ¬Ã¢â€ž ¢ and the à ¢Ã¢â€š ¬Ã‹Å"relativeà ¢Ã¢â€š ¬Ã¢â€ž ¢ interpretation. The first version of purchasing power theory calculated as a ratio of consumer goods prices for any country that has tended to the equilibrium rates of exchange. In the second version of relative interpretation the rate of exchange rate have been determined between the two countries and quoted with general levels of prices of two countries. This version amend the international trade theory which have been the part of PPP, in which the non-traded goods (services) has been introduced, but the advantage is greater in regards of traded goods than non-traded goods, because of the assumptions of marginal rates of transformation. The correlation among purchasing power parity and exchange rates provides the international comparison of national incomes and living standards (Balassa, 1964). Lawrence (1976) gave another review of this purchasing power parity theory. It has define two applications in economics, the first application use of the conversion factor to transfer the data in one national way to another. The use of PPP is mainly the body of (index number theory) and applications of GDP that have improved over the years and path breaking studies in the area continue to appear. The second application of PPP did not have the widespread acceptance, which has remained the unsophisticated applications. Stockman (1980) develops the model of determination of prices of goods and exchange rates. The changes in commodity prices due to supply and demand affect the change in exchange rates by purchasing power parity deviations.The changes in exchange rates have failed to resemble the changes in prices of goods, because exchange rates more volatile than prices levels and inflation rates. The study proposes the equilibrium of exchange rates behavior and different international goods that have been traded. This relationship cannot exploited by the government, because greater the changes in terms of trade the larger the changes in exchange rates variability. The deviations from PPP persists that variation of exchange rates more than ratios of price indexes. The results found the two interpretation of the relationship between exchange rates and terms of trade. In the first, the causes that affect the changes in exchange rates also affect the change in terms of trade because prices of goods do not adjust to clear the markets. This interpretation also found in the research of Dornbusch (1976), and Isard (1977), the analysis formally differentiates the system with respect to exchange rates and allow prices to change but not the changing in asset stocks. The interpretation presented the elasticity approach of the foreign exchange market and the relation between the trade and exchange rates. Real supply and demand shocks affect prices and the derived demand of exchange rates. These changes in demand for foreign exchange result the supply and demand shocks and that should affect the equilibrium of exchange rates. In second interpretation the expected rate of change of exchange rates revealed on the forward foreign exchange market. This should be related the anticipated change in the terms of trade and the inflation differentials. A persuasive argument about the level of exchange rates is only associated with not causes of the relative prices changes. Bilson (1985) gives the empirical findings about macroeconomic and flexible exchange rate of the U.S dollar related to PPP theory. From the perspective of this research, the sluggish price adjustment in the commodity markets resulted in increased variability in exchange rates. For the demonstration of result it is important because the instability of floating exchange rate is due to the inherent differences between commodity and foreign exchange markets. The determination of the expected future rate is impossible, because it is more difficult to reject the forward parity condition. The major part of the forward parity is the variation in the premium is due to the forecast. The object of this study is to determine that if the forward parity failed is the cause of instability in the same way that the failure of purchasing power parity. The findings develop that currency risk premium is the important factor relative to floating rate system, and movement in the exchange rate are dominate d by the non speculative activity and it has the adverse effect on world economy. Meese and Rogoff (1983) analyzed the outcome of sample forecasting accuracy on various models. The study estimated the horizons of the dollar with different country currencies, like Dutch mark, Japanese yen, and Britain pound that traded to weight the dollar exchange rates. It has also studied the flexible exchange rates with the monetary models of sticky price, so the model of sticky price, which incorporates the current account. The first model is structural models in which it requires to generate the forecasts of exchange rates and explanatory variables. It contains the explanatory power, but it is predicted badly because the explanatory variables are difficult to predict. The second is the univariate time series model in which it identifies a variety of prefiltering techniques involves differencing, de-seasonalizing and removing time trends. The relative performance of these techniques is of interest in itself. The third model use is the random walk model. It is also linked with this univariate time series model. It is used as the predictor of the current spot rate with the entire future spot rate, and it requires no estimation. In this study the performance of estimated univariate time series models or candidate structural model is no good instead it is worst. From a methodological stand point the view that the outcome of sample model fit is an important criterion when evaluating exchange rate, but the estimation of out of sample is failure with time series models that are well approximated the major country exchange rates. Feinberg and Kaplan (1992) evaluated and interact the real exchange rates index expectations is developed and used to explore the role of determination on domestic producer prices. The fact that time path of the exchange rate has directly affected the input costs, and the price of substitutes strongly. To examine the links between both actual and anticipated movements in the dollar and relative domestic producer prices, it chooses to analyze price responses to real exchange rate changes. The effect is dependent on the nature of substitutability between imports and domestic goods. The major finding is that the period of appreciation and depreciation over the past 10 years to inhibit the pass through in to domestic prices. In depreciation the market share to enjoy the continued good times kept prices other than expected. The theory of optimum currency areas, which is usually presented by the other name called flexible exchange rate system, but it is proponent as a device of depreciation that takes place of unemployment when the balance of payment is deficit and appreciation when it replaces inflation when it is surplus. The problem can be exposed and more revealed by defining a currency area within when exchange rates are fixed. Three answers can be given, first certain parts of the world are going through the process of economic integration, so new experience can be made and what constitutes the optimum currency area can be given the meaning of these experiments. Second those countries that have flexible exchange rates are likely to face problems with the theory of optimum currency areas, so these do not coincide the optimum currency areas with the national currency. Third the idea that illustrates the functions of currencies which have been treated in economic literature, and sometimes neglected in the problems of economic policy. In the currency area, countries with different currencies including national country currencies interact pace of employment in deficit, because there is the haveingness to inflation by the surplus countries. The argument for flexible exchange rate system is based on national currencies, and is valid about mobility of factor, so if it is high in the country and low in the foreign countries, the flexible exchange rates system on home country currencies has to work effectively. The concept of optimum currency area has practically applicable only in those areas, where the state has the political organization in the country. The factor mobility is most considered and is more relative rather than absolute concept, with both industrial and geographical factors. It is likely to change the alterations with time over time in conditions, with the conditions of political and economic stability. Money is the convenience that restricts the optimum number of curre ncies, so in terms of this argument the optimum currency area which is composed in number of countries (Mundell, 1961). In another review, the author defines the stabilization of capital mobility policy under the exchange rates which is fixed and flexible in the currencies markets. It concerns the theoretical and practical approach of the increased mobility of capital. Obstfeld and Rogoff (1995) analyses the global macroeconomic dynamics to supply framework based on competition and nominal prices. The effects of macroeconomic policies on output and exchange rates have not been yet persuaded to abandon. The framework which integrated exchange rates dynamics and current account yields is a new perspective, it realize that when prices are sticky the government should spend on shock raises short run output and long run output. The assumption is that home and foreign government purchases the consumption goods that do not directly affect the private utility, but the per capita real government consumption expenditure is a composite consumption of individual goods. It explains that the composite consumption for the services is to balance the opportunity cost and notice that the money depends on consumption rather than income, that distinction is more important in closed economies. The results of this study develop framework that give new foundations about some of the fundamentals problems in international finance. It realizes that the existing Keynesian model is incomplete to offer a satisfactory treatment of exchange rates, output and the current account, but the model which is used in this study is more complex, because it yields simple and intuitive insights of monetary and fiscal policies. It can be extended in a number of dimensions, including non traded goods, market behavior, government spending, and labor market distortions and so on. It goes beyond the essentially statistical approach that handles the current account and exchange rates issues, most importantly this approach allows to analyze the welfare implications of policies. Melvin (1985) has regarded and focused that how the choice of an exchange rate system can affect the stability of the economy. The appropriate nature of the exchange rate system has differed of the disturbance to the economy. It presented the evidence that indicate that the approach is more consistent according to practice by actual country. The other approach is to reach the desirable price stability, in which some mechanism tells the floating rates superiority has become less in the face of monetary shocks. It finds that the flexibility in exchange rates depends not on openness and less important in the mobility of capital, but its positive effects were found for the economic development. The purpose of this study is to consider the determinants of exchange rates system choice, which indicates the theoretical approach with the country choices. The result found that the choice of an exchange rate system has the role of the disturbance to the economy. It suggests that the money shock s are the key of exchange rate system choice in an economy, in which it seeks to minimize the fluctuations in the country price levels. It also suggests that the greater the price shocks the more is a float, so it affects greatly domestic money shocks. Lothian and Taylor (1996) examine the real exchange rate behavior, and explain the variations in sample of stationary univariate equations in real exchange rates. The study investigates the additional insight in the exchange rates behavior that can be gained by considering the floating rate from the perspective of the data. These issues can be best understood on the subject of real exchange rates stability among the currencies of the major developed countries. Some of the pre-float studies support the fairly stable exchange rates in the long run. Subsequently, Dornbusch (1976), and Frenkel (1981), gave largely as the result of studies published, and reject the hypothesis of random walk performance of real exchange rates. The PPP shows the empirical movements in real exchange rates were highly persistent and effective. Although the PPP is reject the hypothesis of non-stationary behavior of exchange rates in long run. The result of this study shows that the longest span of two countrie s exchange rates are significantly mean reverting. The first model result indicates the 80 percent of the variation in the exchange rates of the history data of two countries. By using of another model, the results explaining the performance of remarkably well in the floating, so that this model produce better forecasts of the actual exchange rates. In line with recent studies, it fined that this process of mean reverting is quit slow, with estimated adjustment of data. In the long run the PPP equilibrium is remaining a useful empirical approximation. Gerlach (1988) examine the dynamic interrelationship between innovations in monthly industrial production in a set of economies, specifically this study attempt the output fluctuations that have been correlated during the periods of fixed and flexible exchange rates. The current has to manage exchange rates flexibility that has reduces the interdependence across countries. It should follow the recent article of Flood and Hodrick (1986) in which it is argued that the variability have been higher during a regime of fixed exchange rates instead of flexible exchange rates, but the conclusion of author is striking so sharply. The results of this study of multiple country output movements under fixed and flexible exchange rates are clear. The variances of growth rates should be higher in the flexible exchange rates and in the fixed exchange rates periods. These variances are statistically significant related to the degree of openness and national income. Thirdly the output movements are co rrelated across countries under exchange rate regime, particularly the co movements in output are more important in the business cycle frequently during the recent years of managed exchange rates flexibility. CHAPTER 3: RESEARCH METHODS 3.1 Method of Data Collection The Data of Consumer price index (Inflation) has been collected from federal bureau of statistics while the data of exchange rate has been collected from Pacific Exchange Rate Service, both are the secondary, published source of data. 3.2 Sampling Technique The sampling technique that has been applicable is à ¢Ã¢â€š ¬Ã…“convenience samplingà ¢Ã¢â€š ¬? as it is easily accessible to collect the relevant information from the source and it is inexpensive and hence, gets a gross estimate of the results. (What is The Advantage of Convenience Sampling, 2007-2010). 3.3 Sample size The sample size is selected on the basis of limitations and scope of the research therefore, Last 54 years i.e., 1947 à ¢Ã¢â€š ¬Ã¢â‚¬Å" 2010, data of inflation and exchange rate is decided to be examined. 3.4 Research Model developed From the above defined and explanations of both the dependent i.e. inflation and independent i.e. exchange rates variables and also discussing the effects of exchange rate on inflation and how it have affects on economic of a country. In this study first analysis is the correlation between these two variables, and identifies the significant relationship. Then it analyzes and evaluates the empirical investigation in regression model as a statistical tool. The simple regression model which can be defined in the equation that represented below: Inflation = ÃŽÂ ²Ãƒ Ã‚ ¾ + ÃŽÂ ²(exchange rate) + ÃŽÂ µ Whereas, ÃŽÂ ²Ãƒ Ã‚ ¾ = the intercept of the equation. ÃŽÂ ² (exchange rate) = the changing coefficient of exchange rate. ÃŽÂ µ = the error term of the equation. From the above explained model, the study develop the following estimation and used for the establishment of the model. Therefore, all the compatible data has entered in to SPSS for statistical analysis. 3.5 Statistical Technique The statistical test that has been applied is single linear regression. This is because only one independent variable and one dependent variable to be used in this research. Frankel (1979) defined that most of the recent work on floating exchange rate goes under the name of the monetary or asset view. The exchange rate is moving to equilibrate the international demand for assets, rather than the international demand for the flow of goods. But with the asset view there is à ¢Ã¢â€š ¬Ã‹Å"Chicago Theoryà ¢Ã¢â€š ¬Ã¢â€ž ¢ in which assumes that prices are perfectly flexible. As the consequences when nominal interest rate changes, it has also reflect the changes in expected inflation rate, so as the domestic currency expected to lose value through inflation and depreciation. This is the rise in the exchange rates and gets the positive relationship between positive exchange rate and inflation. CHAPTER 4: RESULTS 4.1 Findings and Interpretation of the result The simple linear regression technique is used to determine the explanation of dependent variable i.e. inflation due to independent variable i.e. exchange rate. The analysis of the result is defined below: Table à ¢Ã¢â€š ¬Ã¢â‚¬Å" 4.1 Model Summary Model R Square Adj. R Square F Sig. 1 .226 .211 15.207 .000 The table à ¢Ã¢â€š ¬Ã¢â‚¬Å" 4.1 shows that the regression model is best fit to predict as F test value is significant. The variation of regression model is explained by 22.6% i.e. the change in inflation is 22.6% by the exchange rate. Table à ¢Ã¢â€š ¬Ã¢â‚¬Å"4.2 Coefficients Model Un-standardized Coefficients Standardized Coefficients T Sig. B Std. Error Beta 1(Constant) Exchange Rate 121.725 .794 6.887 .204 .476 17.673 3.900 .000 .000 Table à ¢Ã¢â€š ¬Ã¢â‚¬Å" 4.2 the coefficients results show that there is the positive affiliation between exchange rates with related to inflation in Pakistan. The results reflect that the exchange rates beta has the positive value and the T-value of both the variables is significant statistically at 0.05. From the above applied regression model, the result concludes in the way that it explains the relationship of both the dependent and independent variables significantly. The Inflation and exchange rates result shows that the beta value of the variable and T-value is significant at the 0.000 level. So the results conclude that the exchange rates value should significantly play its role in the relationship with related to inflation, but the exchange rates should not individually play a significant role in the relationship with inflation. The hypothesis is not rejected and that the exchange rate explains the inflation by 22.6%. The equation of regression model is written below: Inflation = 121.725 + 0.794 (exchange rate) + ÃŽÂ µ 4.3 Hypothesis Assessment Summary Hypothesis R Square F Sig. Regression Coefficient ÃŽÂ ² T Empirical Conclusion Exchange rate explains inflation. .226 15.207 P .794 3.900 Accepted The hypothesis of this study is that exchange rate explains the inflation, which is being accepted and exchange rate is explaining inflation by 22.6%. These findings support to recent theories that suggested the foreign exchange market efficiency with the existence of risk at equilibrium. Wihlborg (1982) examined the relation of interest rates, exchange rate and currency risks in this study. It identifies the test which empirically shows the impact of currency on interest rates and exchange rates. In this study there are three different ways in which the importance of currency risks for interest rate and exchange rate determination. The results presented here that substantiate the changes in the level of currency risk have a non-negligible impact on the changes of exchange rates and on rates of interest of relative between currencies. CHAPTER 5: CONCLUSION, DISCUSSIONS, IMPLICATIONS AND FUTURE RESEARCH 5.1 Conclusion This study is concluded to examine the dependency of exchange rate on inflation by using the data of consumer price index (CPI) as inflation and the data of exchange rate on yearly basis. The result of this study is highly significant so that the hypothesis of this study is not rejected. The result shows that 22.6% variation in inflation is due to the exchange rate in Pakistan. The analysis of this study also shows that if exchange rate becomes zero, the inflation exist to some extent. For example, if one unit of exchange rate increases, the inflation increases only by 0.794 times. 5.2 Discussions This study has applied exchange rate as independent variable and consumer price index (CPI) as dependent variable. For the availability of data, all the data should be available on daily monthly and yearly basis, but the data is used in order to consistent as yearly basis. The regression model has been formulated for these variable relationship investigations. The study developed the hypothesis that the exchange rate explains the inflation in Pakistan, and the findings are supported by the analysis done by Balassa (1964), Meese Rogoff (1983), Frankel (1979), and Mc Callum (1999) etc. 5.3 Implications and The result also accompanies that the exchange rates are the strength of character of foreign exchange market in Pakistan, and it should effect on each of the related variables as an inflationary basis. Therefore the State Bank of Pakistan and Government officials should realize the role of exchange rates in the economy and try to maintain exchange rates to stop or decrease the consumer price index in Pakistan, so that the price range of every thing should be in range of common men. Also Government should addres

Golden Rice Essay -- Biology Essays Research Papers

'Golden Rice': Who Would Have Thought Something So Dry Could Raise So Much Controversy? Heated debate over the bioengineering of a type of rice that has come to be called 'golden rice' has been taking place in the past five years. Exploration of the possibilities that would follow the mapping of the rice genome began in response to the huge populations in developing countries that experience vitamin deficiencies; namely, vitamin A. When biotech company, Syngenta, announced that they had mapped the rice genome, a series of activist groups spoke out against a project that was, many argued, politically and financially motivated. This has been a topic of intense debate that I was surprised to find. Developing a kind of rice containing a vitamin that is lacking among large populations seems to be such a great idea. So why does so much controversy surround the project? There are many more disadvantages to the introduction of the new technology than one might anticipate. The following first explores the effects of vitamin a deficiency and then the arguments of the opposition a nd supporters' responses to it. Vitamin A is an organic compound that is needed in small amounts in the human body; however a deficiency in this micronutrient can lead to problems and illnesses (3). The vitamin is found naturally in many plant and animal foods in the forms of retinal in animals and carotene in plants (3). Retinal pigments that are very important for night vision are produced by Vitamin A; the vitamin is also important in maintaining the strength of epithelial tissues (5). Without proper amounts of Vitamin A, the outer lining of the eyeball becomes dry and wrinkled, leading to redness and inflammation and, which brings potential of blindness... ...ww.indiatogether.org/reports/goldenrice/science.htm 9)"An exercise on how not to do science.", Author of this article is adamant critic of 'golden rice.' http://www.indiatogether.org/reports/goldenrice/science2.htm 10)"Golden Rice and Vitamin A Deficiency.", This article addresses problems with Golden Rice http://www.foe.org/safefood/rice.html 11) "Golden Rice: blind ambition?" Friends of the Earth International. Link Magazine: Issue 93, April/June 2003. More arguments against Golden Rice 12)"Grains of delusion: Golden rice seen from the ground.", Assessment of pros and cons of Golden rice. http://www.grain.org/grain/error404.cfm?url=/publications.delusion-en-p.html 13)"Golden Rice and Beyond.", This article contains arguments supporting Golden Rice research and the importance of technology transfer. http://www.biotech-info.net/Grandbeyond.html

Charlotte Brontes Childhood Influences to Become a Writer :: Charlotte Bronte Author Essays

Charlotte Bronte's Childhood Influences to Become a Writer Charlotte was born to in 1816 in Yorkshire to Patrick Bronte and his wife. She was one of six children, an averaged size family in those days. The family were moved to Haworth (a small village in the west Yorkshire moors) in 1820. Sadly a year later Mrs Bronte died leaving the six children in her sisters care. Charlotte had to cope with the death of a mother when she was very young and the death of her two elder sisters a few years later. She had to learn to care for herself and to be more independent. This may have helped Charlotte to be able to empathise with the feelings that arise when somebody dies. In later years she was then able to use these feeling in her novels. Having to be independent may have helped her to be able to make up the character Jane Eyre as she was in a similar situation to as Charlotte, having to learn to care for herself and having to cope with the death of a parent. In 1824 Charlotte was sent to boarding school with three of her four sisters. The appalling conditions at the school had a long term affect on the two elder sisters and this is where Maria and Louisa died. After the death of Maria and Louisa Charlottes father brought all his children home. Charlotte made this school the model for Lowood institute in Jane Eyre. So although she had been through horrible times she was able to use them to her advantage. After their mother and two eldest children had died, Charlotte was left with her sisters Emily and Anne and brother Branwell to the care of their father, and their strict, religious aunt, Elisabeth Branwell. The children created imaginary kingdoms, which were built around Branwell's toy soldiers, and which inspired them to write stories about the fantasylands of Angria and Gondal. Charlotte had a very big imagination at an early age and having a brother and sister that shared this imagination helped her to expand on it. All of Mr Brontes children were encouraged to read widely.The Bronte children were avid readers and they loved to make up stories and then share them with each other. In later life Charlotte started a new school and after she had left the school she then returned to it a few years later as a teacher. She was able to practice her writing skills and learn how to teach them to others. In 1841 Charlotte became a pupil at the Maison d'education pour les jeunes, in Brussels.

Product Propaganda :: essays research papers

In order for a company to prosper and grow, some look to new products and packages, new uses and/ or new markets. A few of the companies featured used their ingredients as a marketing tool; while others utilized their appealing catch phrases as the main tool in their marketing scheme. Often, during this type of product propaganda many is revealed about the company; while the product itself is tucked behind the hype and flashy words of the companies’ marketing geniuses. The companies featured in this module seem to stick to certain trends such as marketing to one group of the population. Of the marketing schemes that arise include, targeting children and using the â€Å"mommy, buy me that† factor, the â€Å"on the go† American, the creative individual, and women who want to eat and feel good about themselves doing it. Many of these strategies seem to work however, one might want to reflect on the truth behind this propaganda. Nevertheless, marketers need not fret about if they are stretching the truth or not; all that matters is if the product sells.   Ã‚  Ã‚  Ã‚  Ã‚  General Mills revealed that extending into other markets can prove profitable. When General Mills extended its corporation into the snack market by adding Milk n’ Cereal Bars and Morning Mid, they were very successful. General Mills found a way to change with the changing lifestyle of the typical â€Å"on the go† American; making their breakfast products portable. Not only did they unleash a new product onto the market, but they extended their â€Å"marketing loop† to people who are â€Å"on the go.† Nowadays, Americans are all about the fastest cars, quickest internet connection, and yes, even the quickest way to get through a meal. People today do not even want to stand in line at the bank that they came up with online banking; this is where the â€Å"on the go† breakfast bars come into play. General Mills also took care of the â€Å"nutritious on the go† Americans. In addition to being a good â€Å"on the go† bre akfast, Chex Morning Mix also provides nutrition because it has 10 vitamins and minerals. The new â€Å"on the go† product is a good selling factor for busy people who do not want to lose nutritional value by eating on the go. The idea that one can actually eat their breakfast on the move appeals to not only the fast paced people of today, but also to the ones that want to acquire more sleep.