The Factors that Lead to Instability of Commodity Price

The Factors that Lead to Instability of Commodity Price 1.1 Background of the study Commodity price will influence the economy in some countries in the world. There are many factor that can cause the instability of commodity price. As we know commodity can be classified as goods that demanded by the people. In the economic theory, if the demand higher than the supply it can cause shortage, if this is happen the economy in the country will be instable. In the case of commodities, there are several technique to secure the price of commodity in order to make sure the price is stable. For example, change in exchanged rate, world political situation, inflation, global output, industrial production and etc. 1.2 Problem statement Over many years, there are many researchers make an analysis about the factor that lead to instability of commodity price. Most of them discover a different idea through out their research about the instability of commodity price. This is important to a country to know what is actually the cause of this factor. Therefore, a research must be conduct in order to know what is actually the factor that lead to instability of commodity price. 1.3 Research objectives The research objectives of this research as follows: To determine the factor that lead to instability of commodity price. To know the relationship between the factors toward the commodity price. To identify the effect of commodity price. 1.4 Scope and limitation of study In order to complete the research of the study, I have gathered trusted information from the internet. Few journals have been chosen to get some additional information. After that, in order to get what the objectives want of this study, secondary data have been chosen. The limitation of this study is to choose the best method that can conduct this research and it is hard to choose. There are methods can be used to know the factor that lead to instability of commodity price. 1.5 Significance of the problem By doing analysis on this study, we can reduce the risk of increasing commodity price due to the economic crisis.besides, we can determine the signoificant variables that effecting the commodity price. This research also can give advantages to government because they can control the commodity prce base on the economic condition. 2.0 Literature Review Commodity can be defined as goods whereby it is demanded by the people. As we can see today, the price of commodity is now increasing. In my opinion, it may be due the cost of resources that is also increasing. Therefore, we can say that the price of commodity is determined wholly by the market function. Commodity goods are consists of sugar, crude oil, gold, rice and etc. When the value of commodity increases, the cost will increase as well. There are some reasons that lead to the instability of the price of commodity. Thus, I have found out few reasons from knowledgable person that lead to the instability of the price of commodity. A study of Frankel Rose (2009), have shown that the price of commodity is influence by inflation and global output. It was found that the relationship between the commodity and both the inflation and global output is positive. In addition, the microeconomic variables also affect the commodity price. For example, inventories. Another evidence also shown that the inflation also influence the commodity price (Gospodinov Ng, 2010). After the unemployment gap and oil price being controlled, it was found that the price of 23 commodities were influenced by the inflation. Another study of Bower, Geis Winkler (2007), also shown that the inflation and exchange rate also influence the price of commodity. On the other hand, the study of Pindyck Rotemberg (1990), the macroeconomic shock influence the instability of price commodity, whereby, the industrial production and inflation will determine the future demand for commodity and will later affect the price of commodity. Thus, wh en the interest rate increase, the commodity price will decrease. However, the study of Bastourre, Carrera Ibarlucia (2007) have shown a different view on what affect the commodity price. This is because, in the long run the Argentina commodity price is influence by the real interest rate, real exchange rate of United States of America and the demand of raw materials. Other different view regarding instability of commodity price is influence by predictions of conditional variance and conditional expectations theories (Laroque, 1997). The global monetary conditions could also influenced the price of commodity whereby, in another study of Anzuin,Lombardi pagano(2010), it was found that the monetary policy shock gave impact to the instability of commodity price. In a different study of Wescott Hoffman (1999), it was found that the price of commodity as in corn and wheat were influenced by the agricultural policies, stockholding and government pricing support. When the agricultural policy maker asked the producer to increase the price, then the commodity price need to be increased or vice versa. According to Lalonde, Zhu Demers (2003), it has shown that the world economic activity and the effective exchange rate of US dollar lead to influence the price of commodity. Thus, if the economic activity is active, it may lead to increase in commodity price. On the other hand, according to Tadesse Guttormsen (2010) the periodic price threshold influence the instability of commodity price. When the price of threshold increase, the commodity price will increase as well. After viewing the resources, I found several factors that lead to the instability of commodity price. Those factors consist of inflation, exchange rate, interest rate, global output and more. After identifying all the factors, the theoretical framework can be sketched. Thus, the method to be used can be indentified and hypotheses can be made after analyzing all the data. 2.1 Theoretical framework Inflation Exchange Rate The factor that lead to instability of commodity price Interest rate Global output Theoretical framework is the part of the study including in research methodology. Usually the network of association can be more clear explained the entire variable in the study. If we look to the sketch above, there were independent variable on the left side and dependent variable on the right side. What is Independent and dependent variables? Independent is the variables that lend itself, and dependent vice versa. From the sketch of theoretical framework above, we can see that the independent variable consist of four, inflation, exchange rate, interest rate and global output. The dependent variable is the factor that lead to instability of commodity price. 3.0 DATA METHODOLOGY 3.1 Introduction By using the secondary data the factor that lead to instability of commodity price can be conducted. Secondary data can be define as the data that already exist by the previous researcher. The data is consist of published and unpublished material such as journal, article and etc. Through the data base, the secondary data can be gained. Thus, the methods for this analysis are used to complete the objectives of the analysis. 3.2 Data, population and sampling method In order to complete the research, the data can be collected from world bank and Bursa Malaysia. the population is data is collected for Malaysian only. It is because this research is on commodity price in Malaysia. In my opinion population is the group of people that lives together in certain area. The researcher can gain their information or data in that area in order to complete his research. For example, if the researcher want to investigate about academic dishonesty or plagiarism among the students in UiTM Sabah, he must collect the data from the population in UiTM Sabah only. On the other hand, this research is doing in Malaysia so that the data collected must be suitable because the data based on commodity price in Malaysia. Sampling method is divided into two which is probability sampling and non probability sampling. By using this sampling method, researcher can cut a lot of time doing research and also can cut cost. 3.3 Analysis of data To estimate the data, the univariate modeling technique such as naÃÆ'Â ¯ve trend model, exponential smoofhing and lagragian model will be use. 3.4 Hypothesis development The hypothesis that can be concluded for this research is whether the dependent variable such as inflation, exchange rate, interest rate and global output will effect the instability of commodity price. The directional and the non directional hypothesis is the classification of hypothesis. The null and alternate hypothesis can either be rejected or accepted in accordance with the result from the test of the variables. 3.5 Summary Before conducting a research, we have two element that have to be taken into consideration that is the data and methodology. It is better to make sure the availability of data before one proceeds to do research. To gain an accurate result for a research we must use proper methods. When data is already gathered and analyzed, hypothesis can then be tested.

Advantages of Being Bilingual Essay

In today’s society, twenty percent of the United States citizens are bilingual which demonstrates that America is rapidly growing. With all this growth, people are becoming fast learners when it comes to accumulating multiple languages. With the good comes the bad, therefore not all people are fortunate enough to learn and develop another language. By understanding and comprehending two languages you have achieved a big accomplishment. Being bilingual is important, especially in today’s society, because it allows people to become a dependable source – when it comes to their occupation. Being bilingual is also important because it shows the time and effort put into learning a new language, which shows devotion. Overall, being bilingual is a huge benefit because it allows people to work globally, increases job opportunities, and it opens the doors to a new culture. Many businesses around the United States associate with their workers and customers globally. Being bilingual is efficient because as the businesses expand, they need people to talk to others from across the globe. Plus, if you can speak a language someone else cannot then you are reliable for that business. Another plus about being bilingual in the cooperate world is they usually offer a higher pay or rank to people who know multiple languages. Most companies do that because it is hard to find people out there that can fluently speak another language and can handle the situation and if those people were not there it would be chaotic. Therefore by stating all of this information, companies need bilingual people because they do not just deal with English speaking people, they also speak to people from all over the globe which is an important role to fill in a corporate job. Studies have shown that bilingual people have better task switching capacities because of their acquired ability to inhibit one language while using another. In other words, speaking two languages forces your brain to recognize two different language systems. So, basically you become smarter. Researchers set lingual, arithmetical and physical tasks for 121 children, aged about nine, in Scotland and Sardinia, Italy. They found that the 62 bilingual children were significantly more successful in the tasks set for them. The study also assessed the children’s vocabulary, not so much for their  knowledge of words as their understanding of them. Again, there was a marked difference in the level of detail and richness in description from the bilingual pupils. Bilinguals score higher on average on tests involving creative thinking or problem-solving. The ability to translate abstract concepts from one language to another also develops the skill to look at tangible problems in more than one abstract way. Did you know that people who speak more than one language tend to make fewer errors in their driving? A side benefit, nonetheless! Bilingual adults and children seem to have social and emotional benefits like being able to internalize negative states like anxiety, aggression, anger, loneliness or low self-esteem less frequently. They have greater tolerance and less racism. It seems likely bilinguals would be more tolerant of differences and more open to diversity. According to studies, bilinguals tend to make better rational and financial decisions. Bilingual children are more likely to have an interest in the cultures that speak their second language, whether it is a â€Å"heritage† language or not. This can manifest early in life as an active interest in different educational avenues. Museums, fairs and street festivals, and even just visits to neighborhoods will have an inherent interest to bilingual children that monolingual children may not share. Children raised bilingual are more likely to show tolerance for other cultures at a young age. They play more easily with children who do not speak their language or who come from different socioeconomic backgrounds, and are more likely to show an interest in socializing beyond their established circle. In early childhood, this helps greatly with school, which focuses heavily on social skills in the lower grades. It can also help prevent disciplinary needs later in life — more tolerant children are, overall, better-behaved children. Bilingualism promotes overall cognitive development because a bilingual individual encounters the world from two different language perspectives, which prevents them from having a limited experience. This extended way of thinking facilitates the approach to cognitive problems and higher level of abstract thinking. Bilingual adults have a clear edge in business world. By being able to communicate in two languages, you have twice as many opportunities to land a great job. Being bilingual makes it easier to  travel, find a job and belong to this new global world inside and outside of the U.S. Children’s brains are primed for the necessary language skill developments in a way that adults’ aren’t. Many of the advantages described here will show up most strongly if you start bilingualism in your child’s early age (the earlier – the better!). Adults can acquire the same skills and strengths through bilingual training, but it happens much more slowly (how much spare time do we have in our busy adult lives?) and with a greater need for tedious repetition. In conclusion, Bilingual individuals are the new norm and if you are monolingual you are staying behind the curve. It’s adapt to survive or you will not make it in this new world order.

Organizational Structure Essay

An organizational structure is a composition that specifies a company’s hierarchical structure. There are various kinds of conformations that organizations can choose to build their business around. The organizational structure exemplifies the way in which control and business affairs have been appointed within the organization. Organizational structure encompasses the design of an organization though people positioning and responsibilities in order for organizational goals can be reached. Some of the time, a formal structure is not necessary due to a small informal business setting. In large organization responsibilities must be distributed. Hence, the reason that policies and procedures are established that assign responsibilities for numerous positions. The determination of these organizational functions (such as marketing, finance, human resources, and operations) influence and determine the organizational structure of your an organization. The three main types of organiza tional structures are functional structure, divisional structure, and matrix structure. Divisional Structure The structure that an organization is based around also is contingent on the enormity of the company. Divisional structure separates the faculty based on the commodity and customer demand verses geographical location. For example, each area within the organization is accountable for certain divisions. Each division has individual support systems such as finance department, marketing department, warehouse department, and maintenance department. Divisional structure is grants flexibility and is a decentralized structure. Divisional structure also grants quick adaptability to geographical changes. Divisional structure embellishes advancements in the market and industry and allows for various plans of action. However, this structure causes replication of resources due to each unit having the necessity of every resource. PepsiCo’s Organizational Design An example of an organization design around divisional structure is PepsiCo. PepsiCo is a flexible company that is constantly looking for new innovations and consistently adapts to the geographical market. PepsiCo has a decentralized organizational structure. The functional determinations are made in individual units with corporate control and direction. PepsiCo has one CEO and three division presidents. The company’s hierarchical structure continues as each division is broken down into market units. Each market unit has a director. Furthermore each market unit is divided into regional units, then down the chain to sales units. Each unit has its own resources, such as marketing, finance, human resources, and operations departments. PepsiCo determines responsibilities by departmentalization. Departmentalization is a conglomeration of common duties and characterization of tasks. The influences of departmentalization are function, product, geographic, process and customer. PepsiCo maintains a span of control by making sure of correct distribution of responsibility among employees and task obligations are accounted for. For example, units are tasked with weekly, monthly, quarterly, and yearly forecast for sales, operations, overhead, and labor. Reports are sent weekly to account for these actions. Human resources departments are in each division to ensure control over the organization. There are guidelines and procedures in place to ensure the rules are being followed across the globe. Formalization sets the standard for the administered responsibility. Each unit at PepsiCo has management teams in place to ensure control of task performances. For example, a if a location has been tasked with a 1,000 case distribution for week one in the period and the sales teams are severely falling short on sales, management will step in to centralize the issue, reiterate the method of actions, and ensure the actions are conducted in a certain manner to achieve results. PepsiCo is multinational organization made up of three units which are PepsiCo Americas Foods, PepsiCo Americas Beverages and PepsiCo International. This structure allows the organization to focus on manifesting international markets, which will grant independence revenues, enabling focus on better product advancement. The organization is spread across the globe. However, the control is local, unlike a matrix structure that is located only in a single area (PepsiCo 2012). Matrix Structure A matrix structure formalizes line teams as well as the typical divisional hierarchy. The matrix structure is a hybrid between the functional and divisional structure, effectively creating independent business units for each product or service created or each unique market targeted. The matrix-structured organization is a project-based business that divides individual groups based on functional specializations. Variation of the matrix structure divides the authority by both functional and project areas. The functional manager heads up the functional areas of the organization. The project supervisor oversees the assigned project. This allows for management to focus on areas of proficiency. Companies such as General Motors has based its organization around the matrix structure due to the ability to specialize in specific areas, and organizational communication through other fields. General Motors believes the differentiation of ideas creates innovational determinations. The matrix structure also allows the human resources department to be shared throughout the organization. General Motors is made up of one main chief information officer (CIO) and several divisional CIOs that control the functionalities in the organization. General Motors also has process information officers that work in various areas of expertise across the organization. General Motors believes the matrix structure develops global commercialism (Daft 2007). Functional Structure Functional Structured organizations group tasks according to the target. Functional structured organizations work well for organizations that have a need for departments to rely on expertise of its faculty. A major disadvantage to a functional structured organization is the communication boundaries due to variation in departments that work individually. One company that a functional structure works well is Wal-Mart. Wal-Mart is one of America’s largest retailers. Wal-Mart is designed by a functional structure. Wal-Mart’s target market is a consumer with median incomes. Wal-Mart has a limited amount of functions in specialized areas with in the organization. Wal-Mart does not produce its goods, but has enough buying power to supply the demanded products. The organizational structure and large size enables the buying power to purchase goods at low prices. This buying power enables Wal-Mart to offer its target market lower prices creating a competitive edge over other retailers. A functional structured organization; such as Wal-Mart have a chief executive officer, limited executive staff, and department heads in domineering areas of expertise such as accounting, marketing, human resources and warehouse. Wal-Mart’s headquarters and executive staff is made up of a Chief of Executive Officer, Chairman of the Board and Board of Directors, with supporting committees. Conclusion Determining an organizations structural design that will be the most effective for a specific company has great significance on organizational success. Using an unsuitable design structure can be consequential in communication, product development, customer service, and countless situations of other organizational issues. Organizational structure can determine the successful outcome of the organization. Reference Bateman, T. S., & Snell, S. A. (2011). Management: Leading & Collaborating in a Competitive World (ninth ed.). New York, NY: McGrall Hill. Retrieved May 7, 2012 (2012). PepsiCo. Retrieved May 7, 2012, from www.pepsico.com Daft, Richard (2007). Organizational Theory and Design (ninth ed.). Manson, OH: Thompson Higher Education. Retrieved May 7, 2012.

Music The Best Reggae Band From The Columbus Area

In a large city, full of diverse people, finding a musical performance is not hard to come by. Luckily, as I was searching online for different performances I ran across The Flex Crew performing at Skully’s music diner. I have been to Skully’s once before to watch a folk band perform. The atmosphere was a lot different than when we saw The Flex Crew. Obviously, the genre of music was a lot different, along with the atmosphere of the crowd. I was very surprised by the number of people in the bar that evening. Mostly, because the performance started at 11PM and the world series was on. On top of this, online their website said the show began at 10PM, but like a very great band they came out at their own pace. In the meantime, there was a DJ performing to keep the crowd alive. The Flex Crew is a reggae band from the Columbus area. After doing a little research I learned they are known as â€Å"the best reggae band in the Midwest.† A friend and I went to Skully’s Music Diner on Sunday night to watch The Flex Crew. Their band consisted of seven members, and they all varied on the different type of instruments. Some were strictly on vocals, while others were on guitars, drums, pianos, etc. On top of this, the band was very diverse in regards to their playing and singing. Yes, there was a main guitarist and a main singer, but throughout the songs they all grabbed different instruments and sang different pieces of the songs. I also learned they originated from Columbus and have beenShow MoreRelatedMusic : The Best Reggae Band From The Columbus Area816 Words   |  4 PagesFlex Crew performing at Skully’s music diner. I have been to Skully’s once before to watch a folk band perform. The atmosphere was a lot different than when we saw The Flex Crew. Obviously, the genre of music was a lot different, along with the atmosphere of the crowd. I was very surprised by the number of people in the bar f or the fact that the world series was on and was game 5. On top of this, online their website said the show began at 10PM, but like very great band they came out at their own paceRead MoreCosta Rica Culture Paper2043 Words   |  9 PagesEver wanted to go south to a Latin American country? Well there is plenty to choose from but my best pick of where to go would be to this little, beautiful country culturally and physically, called Costa Rica. You don t believe me, huh? Decide for yourself. Costa Rica s general information Costa Rica is currently at the population of 4,500,000. The national territory is 31,682 square miles. If you compare that to size of the United States at 3.79  million square miles, its a very small pieceRead MoreRastafarian79520 Words   |  319 PagesRastafari This page intentionally left blank Rastafari From Outcasts to Culture Bearers Ennis Barrington Edmonds 2003 198 Madison Avenue, New York, New York 10016 Oxford University Press is a department of the University of Oxford It furthers the Universitys objective of excellence in research, scholarship, and education by publishing worldwide in Oxford New York Auckland Bangkok Buenos Aires Cape Town Chennai Dar es Salaam Delhi Hong Kong Istanbul Karachi Kolkata Kuala