The following are equally important reasons why Stalin was...

The following are equally important reasons why Stalin was able to hold onto power in the Soviet Union: The purges and show trials The secret police Propaganda and the cult of personality Stalin’s economic policies. Explain how far you agree with this statement. Stalin used to methods to hold onto power in the Soviet Union these were fear / coercion and persuasion / consent. If people were not persuaded by Stalin’s personality and economic policies they would be scared into supporting him. From the outset Stalin was particularly aware of his image and the importance and power of propaganda. He came to power partly as a result of his creation of a cult of ‘Leninism’ and by†¦show more content†¦An example was the first of the great show trials where sixteen ‘old Bolsheviks’ and hero’s of the civil war including Kamenev and Zinoveiv were but on trial accused of being directly responsible for the assassination of Kirov, a popular leading Communist, in 1934. Although Historians believe it is more likely that Stalin was responsible for the murder and extremely unlikely that Zinoveiv or Kamenev had anything to do with it. They all confessed to their crimes. Stalin propagated an image of himself as the father / protector of the nation with posters and statues of himself in many Russian town and cities. He also ruthlessly controlled the media to ensure that the Russian people were only given such information as he saw fit. An example of this is the fact that Trotsky’s vehement criticisms of Stalin from the various countries he lived in abroad were kept from the Russia people and indeed Trotsky who had been true hero of the revolution was blamed by Stalin for much of Russia’s problems at the time. Trotsky is also a good example of Stalin’s use of terror when propaganda alone would not succeed since ultimately unable to silence Trotsky in another way Stalin had him assassinated. In the same way Stalin could not bear any challenges to his authority andShow MoreRelatedOne Significant Change That Has Occurred in the World Between 1900 and 2005. Explain the Impact This Change Has Made on Our Lives and Why It Is an Important Change.163893 Words   |  656 Pagesseveral points both before the year 2000 (the collapse of the Soviet Union, the reunification of Germany, the surge of globalization from the mid-1990s) and afterward (9/11, or the global recession of 2008) when one could quite plausibly argue that a new era had begun. A compelling case can be made for viewing the decades of the global scramble for colonies after 1870 as a predictable culmination of the long nineteenth century, which was ushered in by the industrial and political revolutions of

Effect on Economy Due to Change in Rbi Policy Free Essays

Shivans gupta PGPFM nifm- Faridabad Shivans gupta PGPFM nifm- Faridabad Effect of Monetary Policy of RBI on Economy Effect of Monetary Policy of RBI on Economy 2012 2012 Effect of Change in monetary policy of RBI on Economy Economy An  economy  consists of the  economic systems  of a country or other area; the  labour,  capital, and  land  resources; and the  manufacturing, production,  trade,  distribution, and  consumption  of  goods  and services of that area. A given economy is the result of a process that involves its  technological evolution,  history  and  social organization, as well as its  geography,  natural resource endowment, and  ecology, as main factors. These factors give context, content, and set the conditions and parameters in which an economy functions. We will write a custom essay sample on Effect on Economy Due to Change in Rbi Policy or any similar topic only for you Order Now Repo rate Repo rate is the rate at which RBI lends to commercial banks generally against government securities. Reduction in Repo rate helps the commercial banks to get money at a cheaper rate and increase in Repo rate discourages the commercial banks to get money as the rate increases and becomes expensive. As the rates are high the availability of credit and demand decreases resulting to decrease in  inflation. Reverse Repo rate Reverse Repo rate is the rate at which RBI borrows money from the commercial banks. The increase in the Repo rate will increase the cost of borrowing and lending of the banks which will discourage the public to borrow money and will encourage them to deposit. Cash Reserve Ratio Cash Reserve Ratio is a certain percentage of  bank deposits  which banks are required to keep with RBI in the form of reserves or balances . Higher the CRR with the RBI lower will be the  liquidity  in the system and vice-versa. RBI is empowered to vary CRR between 15 percent and 3 percent. But as per the suggestion by the Narshimam committee Report the CRR was reduced from 15% in the 1990 to 5 percent in 2002. As of October 2012, the CRR is 4. 5 percent. Statutory Liquidity Ratio Every financial institute have to maintain a certain amount of liquid assets from their time and demand liabilities with the RBI. These liquid assets can be cash, precious metals, approved securities like bonds etc. The ratio of the liquid assets to time and demand liabilities is termed as  Statutory  Liquidity  Ratio. There was a reduction from 38. % to 25% because of the suggestion by Narshimam Committee. The current SLR is 23%. Bank rate Bank rate, also referred to as the  discount rate, is the  rate of interest  which a  central bank  charges on the loans and advances to a  commercial bank. Whenever the banks have any shortage of funds they can borrow it from the central bank. Repo (Repurchase) rate is the rat e at which the central bank lends short-term money to the banks against securities. A reduction in the repo rate will help banks to get money at a cheaper rate. When the repo rate increases borrowing from the central bank becomes more expensive. It is more applicable when there is a liquidity crunch in the market. Inflation In  economics,  inflation  is a rise in the general  level of prices  of goods and services in an economy over a period of time. [1]  When the general price level rises, each unit of currency buys fewer goods and services. Consequently, inflation also reflects an erosion in the  purchasing power  of money – a loss of real value in the internal medium of exchange and unit of account in the economy. A chief measure of price inflation is the  inflation rate, the annualized percentage change in a general  price index  (normally the  Consumer Price Index) over time. Gross domestic product  (GDP) Gross domestic product  (GDP) is the  market value  of all officially recognized final goods and services produced within a country in a given period. GDP  per capita  is often considered an indicator of a country’s  standard of living; GDP per capita is not a measure of personal income (See  Standard of living and GDP). Under economic theory, GDP per capita exactly equals the gross domestic income (GDI) per capita (See  Gross domestic income). GDP is related to  national accounts, a subject in  macroeconomics. GDP is not to be confused with  Gross National Product  (GNP) which allocates production based on ownership. Interest rate An  interest rate  is the rate at which  interest  is paid by a borrower for the use of money that they borrow from a  lender. Specifically, the interest rate (I/m) is a percent of principal (I) paid at some rate (m). For example, a small company borrows capital from a bank to buy new assets for their business, and in return the lender receives interest at a predetermined interest rate for deferring the use of funds and instead lending it to the borrower. Interest rates are normally expressed as a  percentage  of the  principal  for a period of one year. Money supply In  economics, the  money supply  or  money stock, is the total amount of  monetary assets  available in an  economy  at a specific time. There are several ways to define â€Å"money,† but standard measures usually include  currency  in circulation and  demand deposits  (depositors’ easily accessed assets on the books of financial institutions). Money supply data are recorded and published, usually by the government or the central bank of the country. Public and private sector analysts have long monitored changes in money supply because of its possible effects on the  price level,  inflation, the  exchange rate  and the  business cycle. Relation between two variables Interest rates investments Interest rates the bond prices are inversely related to each other. When interest rates move up, it causes the bond prices to fall vice – versa. Say for example, you have a bond, which is yielding 10% now. Suddenly, the interest rates in the economy move up to 11%. Now your bond is giving fewer yields than the market return. Obviously it price is going to fall in such a case. Reverse is the case when interest rates fall, the bond price will move up because it is giving more returns than the market return. So movements in interest rates have serious implications for individual investments. Inflation and economy Inflation effects the economy on three sides. One, it is directly linked to  interest rates. The interest rates prevailing in an economy at any point of time are nominal interest rates, i. e. , real interest rates plus a premium for expected inflation. Due to inflation, there is a decrease in purchasing power of every rupee earned on account of interest in the future, therefore the interest rates must include a premium for expected inflation. In the long run, other things being equal, interest rates rise one for one with rise in inflation. Money supply and the economy Money supply also effects the economy on three sides. One, money supply is used to control the  inflation in an economy. On the demand side, whenever money supply in the economy increases, consumer-spending increases immediately in the economy because of increased money in the system. But supply can’t vary in the short – term, so there is a temporary mismatch of demand supply in the economy which exerts an upward pressure on inflation. This argument assumes that demand drives supply, which is generally the case. On the supply side, due to an increase in demand, supply can only be increased by capacity additions. This causes the cost of production to rise that is reflected in inflation. Two, money supply also has a direct relationship with the  growth of an economy. Until an economy reaches full – employment level, the economy growth is the difference between money supply growth rate the inflation, other things being equal. When an economy reaches full employment level, the growth in money supply is set off by a growth in inflation, other things being equal. This happens because output can’t rise after full employment therefore inflation increases one for one with the money supply. Three, money supply also has a relationship with  interest rates. One variable can be used to control the other. Both can’t be controlled simultaneously. If the RBI wants to peg the interest rate at a certain level, it has to supply whatever money is demanded at that level of interest rate. If it wants to fix the money supply at a certain level, the demand supply of money will determine the interest rates. Usually it is easier for RBI to control the interest rates through its open market operations (OMO). So, the money supply is allowed to vary but RBI controls it by playing around with interest rates through its OMO. Cash Reserve Ratio (CRR) statutory liquidity ratio (SLR) and an economy CRR is the percentage of its total deposits a bank has to keep with RBI in cash or near cash assets SLR is the percentage of its total deposits a bank has to keep in approved securities. The purpose of CRR SLR is to keep a bank liquid at any point of time. When banks have to keep low CRR or SLR, it increases the money available for credit in the system. This eases the pressure on interest rates interest rates move down. Also when money is available that too at lower interest rates, it is given on credit to the industrial sector which pushes the economic growth. Monetary policy and economy It refers to a regulatory policy whereby the monetary authority of a country maintains its control over the money supply for the realization of general economic objectives. It involves manipulation of money supply, the level structure of interest rates other conditions effecting the level of credit. The central bank signals the market about the availability of credit interest rates through this policy. The RBI fixes the bank rate in this policy which forms the basis of the structure of interest rates the CRR SLR, which determines the availability of credit the level of money supply in the economy. So it plays a very important role in the development of a economy. Practical Analysis of the Research Table of different Monetary Rates DATE| Reverse Repo Rate| Repo Rate| CRR| SLR| Bank Rate| Mar-10| 3. 5| 5| 6| 24| 6| May-10| 3. 75| 5. 5| 6| 24| 6| Jul-10| 4| 6| 6| 24| 6| Sep-10| 4. 5| 6| 6| 24| 6| Nov-10| 5| 6. 5| 6| 24| 6| Jan-11| 5. 5| 7| 6| 24| 6| Mar-11| 5. 75| 7. 25| 6| 24| 6| May-11| 6| 7. 5| 6| 24| 6| Jul-11| 6. 5| 8| 6| 24| 6| Sep-11| 7| 8. 5| 6| 24| 6| Nov-11| 7. 75| 8. 5| 5. 5| 24| 6| Jan-12| 7. 75| 8. 5| 4. 75| 24| 6| Mar-12| 7. 75| 8. 5| 4. 75| 24| 6| May-12| 7| 8| 4. 75| 23| 9| Effect of change in Repo rate on bank Prime Lending Rate Prime Lending Rate Dates| ICICI| SBI| Repo rate| 20-Apr-12| 18. 5| 14. 5| 8| 04-01-2012| 18. 75| 14. 75| 8. 5| 13-Aug-11| 18. 75| 14. 75| 8| 04-Jul-11| 18. 25| 14. 25| 8| 07-May-11| 18| 14| 7. 75| 24-Feb-11| 17. 5| 13| 7. 25| 03-Jan-11| 17| 12. 75| 7| 06-Dec-10| 16. 75| 12. 5| 6. 5| 18-Aug-10| 16. 25| 12. 25| 6| | | | | | | | | | | As the repo rate and reverse repo rate have direct impact on bank prime lending rate. From year 2010 to 2012 the repo rate keeps on increasing from 6 to 8. 5 the PLR of SBI and ICICI also increasing from 12. 25 to 14. 75 and from 16. 25 to 18. 75 respectively. But as the RBI cut down its Repo Rate by . 50 points the PLR of banks also down by . 25 points. Impact of change in CRR and SLR on Money Supply As the CRR is same in 2010-11, 2011-12 i. e 6%, there is not so much change in money supply it is in between 15000-16000. But as it start to decrease in 4th quarter of 2011-12 money supply start increasing and cross to 16000. And in Ist quarter of 2012-13, CRR become 4. 75 and SLR become 23% then Money supply is 17500 cr. in Indian Economy. Reverse Repo Rate| Repo Rate| Bank Rate| CRR| SLR| money supply|   |   |   |   |   |   | 5. 75| 6| 6| 6| 24| 15100| 5. 25| 6. 25| 6| 6| 24| 15100| 5. 5| 6. 5| 6| 6| 24| 15100| 6. 5| 7. 5| 6| 6| 24| 15100| |   |   |   |   |   | 7| 8| 6| 6| 24| 16000| 7. 5| 8. 5| 6| 6| 24| 16000| 7. 5| 8. 5| 6| 5. 5| 24| 16000| 7. 5| 8. 5| 6| 4. 75| 24| 16000| |   |   |   |   |   | 7| 8| 9| 4. 75| 23| 17500| Effect on Increase in Money supply on Inflation As Money supply increases in the economy, there is more money in the market hich ultimately increase the purchasing power of people. Because of increase in purchasing power the cost of production increases and ultimately Inflation rate increases. So money supply in 2012-13 increases to 17500 cr. The inflation rate become 10. 05 from 8. 65. Reverse Repo Rate| Repo Rate| Bank Rate| CRR| SLR| money supply| i nflation rate|   |   |   |   |   |   |   | 5. 75| 6| 6| 6| 24| 15100| 11. 99| 5. 25| 6. 25| 6| 6| 24| 15100| 10. 55| 5. 5| 6. 5| 6| 6| 24| 15100| 10. 23| 6. 5| 7. 5| 6| 6| 24| 15100| 9. 56| |   |   |   |   |   |   | 7| 8| 6| 6| 24| 16000| 8. 86| 7. 5| 8. 5| 6| 6| 24| 16000| 10. 06| 7. | 8. 5| 6| 5. 5| 24| 16000| 6. 49| 7. 5| 8. 5| 6| 4. 75| 24| 16000| 8. 65| |   |   |   |   |   |   | 7| 8| 9| 4. 75| 23| 17500| 10. 05| Impact of Repo rates, CRR and of Money supply on GDP Growth Rate Data categories and components| units| 2010-11| 2011-12| 2012-13| GDP(Current market price)| in rs. | 7674148| 8912178| 159527986| Growth rate| in %| 18. 1| 16. 1| 16. 9| As we see that our GDP growth rate start decreasing because of increasing rates. Because there is money declination in the market the purchasing power of people and our production starts declining which ultimately effect on our GDP growth. But as in financial year 2012-13 the RBI cut its rate by . 50 then our GDP growth rate increase by . 8 %. Conclusion RBI increase or decrease the rates i. e. repo rate, reverse repo rate, Cash reserve ratio, statutory liquidity ratio to control the money supply in the economy. As this small change in these ratios affect a lot on the whole economy and its various component like on investment index, cost of production, inflation, interest rate, exchange rate, prime lending rate of bank, home loan and car loan rate, deposit rate of bank and etc. In first quarter of financial year 2012-13, RBI decrease the repo rate by, reverse repo by, CRR by, SLR by the ultimate objective of this reduction in rate is to increase the money supply in the economy. As the rate decline in 2012-13, the RBI release 17500 cr. In the market. But this increase in money supply increase the purchasing power of consumer which ultimately effect on inflation and hence inflation also increase. But because of decrease in rates, it is easy to take more loan for the corporate which increase their production and in result of this our GDP also increase by . %. The prime lending rate is directly proportional to the repo rate of RBI. So there is a fall also come in prime lending rate of banks by . 25 points because of decrease in repo rate by . 50 So, The change in monetary policy of RBI affect many other rates and and which also affect the consumer and these rates are the instrument of RBI to control the money supply in the economy. Bibliography * www. rbi. org. in * www. indiabudget. nic. in * www. wikipedia. org * www. simpletaxindia. net * www. karvy. com * www. tradingeconomics. com How to cite Effect on Economy Due to Change in Rbi Policy, Essay examples

International Trade Australia Free Trade Agreement

Question: Discuss about the International Trade for Australia Free Trade Agreement. Answer: Introduction ChAFTA, the abbreviated form of the China Australia Free Trade Agreement came into existence on 20th December 2015. This laid the historic foundation of the next phase for the economic relationship of Australia with China. With China being the largest export market for both services and goods, the agreement is meant to unlock the opportunities for Australia in China. Accounting for nearly 30% of the total exports, China has a growing source of foreign investment (Gartrell 2015). The main aim of introducing ChAFTA is to deliver real benefits to the consumers and businesses. The ChAFTA would also be helping the country to gain access to its largest trading partner, China. Being the only country to conclude the FTA (Free Trade Agreement) with China, the business sector in Australia has gained competitive advantage in the global market. Facts and figures The ChAFTA deal between the two countries is expected to deliver immediate benefits to the exporters all over Australia. The trade agreement would be enabling the 85 % of the goods being exported to China to enter duty free. The amount experts entered duty free was worth $ 86 million approximately last year (Gartrell 2015). It has been estimated that the amount of duty free export would rise after the FTA is fully implemented in the future. These duty free exports would be enabling the exporters in Australia to save hundreds of millions of dollars in the form of extra tariff payments in the next year itself. In this regard, the dairy industry in the country is expected to add another 700 jobs in the similar timeframe. This is owing to the fact that the FTA would be helping in eliminating the tariffs of up to 20 % across a variety of products including the food items for infants to cheese products (Ganz 2015). Figure 1: FTA between Australia and China 2014 statistics Source: (dfat.gov.au 2014) According to Fairfax media reports, the FTA would be helping in providing the investors an opportunity to invest in the market whether the business needs expansion or establishing new properties (Gartrell 2015). The agreements would be helping in providing benefits to not only the dairy sector but also the agriculture sector alike. Moreover, the FTA would be facilitating in eliminating the tariffs on beef and wine of up to 25 % and 20% respectively over the coming years (is Informit, EduTV and TVNews 2016). In addition, the duty on the medicines, resources and services are also estimated to be reduced down. The FTA would also enable the customers in Australia to get benefit from the Chinese goods, which could be more affordable to them. The import of Chinese goods in Australia would get the direct benefit from the FTA where the products include the clothing, electronics and other household items as well. Industries growing in the countries in trade Boost in Dairy industry China is the largest dairy market-trading partner of Australia. It has been estimated that the exports have almost doubled to $443 million that what was in 2015 (dfat.gov.au 2014). The dairy industry has been estimated to grow under the ChAFTA over the next few years, owing to the elimination of the tariff of up to 15% on liquid milk. This elimination of tariff would enable the dairy industry to remain competitive in Chinese market over the next 9 years. Improved financial service ChAFTA is believed to strengthen the ties between the financial services in China and Australia. This situation could lead to the provision of new opportunities for the wealth management service providers. The increase in the offshore RMB currency flow into the mainland securities in China would enable in increasing collaboration in the direct equity investments as well (Liao and McDowell 2015). Meat industry Under the ChAFTA, the import duty is estimated to be phased out by as high as 23% over a period of 8 years (dfat.gov.au 2014). This would see the sheep meat and skin export in Australia to be gaining competitiveness with the suppliers in New Zealand. Moreover, the elimination of tariffs would also enable the farmers in Australia to increase returns by proving them with security and confidence in the future of the lamb meat industry. Hotel Management In respective of higher education, China maintains a JSJ List which is a list of preferred overseas education providers (dfat.gov.au 2014). The students from local as well as overseas are advised to enrol in any of the institutions as mentioned in the list. ChAFTA would be helping in ensuring that the Australian higher education providers are included in the JSJ List. This would increase the opportunities to attract the Chinese and Australian students. Moreover, it would also help in maintaining a joint venture between the Chinese universities and private higher education providers in Australia. Conclusion China is the largest trading partner of Australia, which buys almost 33% of the experts from the country. Under the FTA, the exporters would be getting benefits of tariff cuts, which could be giving rise in the opportunities for the investors to invest on the growing market. The elimination of tariff cuts would be luring the potential investors to invest in the market as well. The ChAFTA would be helping in providing the investors an opportunity to invest in the market whether the business needs expansion or establishing new properties in both the countries. References dfat.gov.au, 2014.CHINAAUSTRALIA FREE TRADE AGREEMENT. [online] Available at: https://dfat.gov.au/trade/agreements/chafta/fact-sheets/Documents/chafta-snapshot.pdf [Accessed 22 Aug. 2016]. Ganz, M., 2015. Demystifying the China free trade agreement.Company Director,31(3), p.40. Gartrell, A., 2015.Exporters rejoice as Australia's free trade deal with China finally comes into force. [online] The Sydney Morning Herald. Available at: https://www.smh.com.au/federal-politics/political-news/australias-longawaited-free-trade-deal-with-china-finally-comes-into-force-20151218-glqzra.html [Accessed 22 Aug. 2016]. is Informit, W., EduTV, I. and TVNews, I., 2016. China-Australia free trade agreement.Ecodate,30(2). Liao, S. and McDowell, D., 2015. Redback Rising: China's Bilateral Swap Agreements and Renminbi Internationalization.International Studies Quarterly,59(3), pp.401-422.