Economic Coursework Example | Topics and Well Written Essays - 1750 words

Economic - Coursework Example A number of reasons are available for this. For example, the structure of the Icelandic economy makes independent monetary policy more difficult to implement, national and international economic and financial market conditions have been highly unusual, and the formulation of monetary policy, which did not succeed in gaining sufficient credibility, was somewhat imperfect. Moreover, increased globalization of the national financial system and its rapid growth are likely to have weakened the transmission channels of monetary policy and increase the underlying risk in the financial system, which magnified the volatility of the exchange rate. Sufficient co-ordination between monetary and fiscal policy was also lacking, which exacerbated the negative side effects of financial restraint. A fixed exchange rate regime has advantages and disadvantages. The main benefit is the uncertainty accompanying exchange rate fluctuation is reduced, particularly if the peg proves credible and speculative attacks can be avoided. If Iceland were to adopt a fixed exchange rate regime, it would be most obvious from an economic point of view to peg the krona to the euro. Such a regime could be implemented in different ways. Experience from the financial crisis, both in Iceland and elsewhere, indicates a need for further strengthening of monetary policy and macroeconomic policy in general. The experience of recent years highlights the importance of implementing stabilization policy so as to hinder rapid, unsustainable asset price inflation, which is usually accompanied by excessive credit expansion. It is also important to prevent the banking system from creating risks that are beyond the ability of the national authority to deal with it. The paper analyses policy adoption by monetary a nd fiscal authorities in the recent years as well as the coming years in Iceland. In the past two years, the formulation of monetary policy has reflected the capital

Issues of International Marketing Assignment Example | Topics and Well Written Essays - 2000 words

Issues of International Marketing - Assignment Example As of January 2014, IKEA owns 349 retailing outlets across 43 countries. The gross revenue was â‚ ¬28.506 billion in 2013 and its operating profit share was worth â‚ ¬4.011 billion (IKEA Group, 2013). IKEA is a privately owned business organization and its founder was Ingvar Kamprad. The current CEO and chairman of the company are Peter Agnefjà ¤ll. The company manufactures more than 12000 variations of products and conducts business in all major economies of Europe, North America, Asia and Oceania (Chu, Girdhar & Sood, 2013). Due to extensive business internationalization, the scope and scale of IKEA’s business are wide. The company utilizes 1% of the global supply of wood. IKEA has expanded its internationalization process by following different types of market entry approaches (Dickson & Giglierano, 2000). In China, IKEA expanded business through joint venture entry approach. A joint venture is a special business agreement whereby two or more business entities merge as a completely new organization or to generate new assets to the equity holding of both the companies (Campbell & Netzer, 2009). IKEA entered the Chinese market through a joint venture agreement. The company opened its retailing outlets in prominent locations in China under this venture agreement. IKEA had entered the Chinese market in 1998 (Harapiak, 2013). The company had selected the joint venture method for lowering the political risks associated and gaining core competencies within the dynamic furniture industry. Moreover, according to the Chinese regulations during IKEA’s entry, a foreign organization could enter only through a venture business with any native Chinese company. By forming a joint venture with a local furniture company of China, IKEA made strategic alliances with the Chinese suppliers and appropriately evaluated the market features therein (IKEA Group, 2013).