Evaluating Internal Controls Essay Example for Free

Evaluating Internal Controls Essay An organization’s internal controls are comprised of five components, which include: the control environment, risk assessment, control activities, monitoring, and information and communication. The five components of internal control are considered to be criteria for evaluating an organization’s financial reporting controls and the bases for auditors’ assessment of control risk as it relates to an organization’s financial statements (Lowers, et. al., 2007). â€Å"Thus, auditors must consider the five components in terms of (1) understanding a client’s financial reporting controls and documenting that understanding, (2) preliminarily assessing the control risk, and (3) testing the controls, reassessing control risk, and using that assessment to plan the remainder of the audit work† (Lowers, et. al., 2007, p. 161). Phase I – Understanding Throughout the course of Phase I an audit team will work to obtain a clear understanding of a company’s internal control environment and management’s risk assessment. The audit team will review the flow of transactions through the company’s accounting system, and the design of some client control  procedures (Lowers, et.al., 2007). In this step the audit team will perform their assessments in a top-down risk-based manner that first examines company-level controls (CLCs) and then controls of significant business units within the company (Lowers, et.al., 2007). Controls within the control environment and companywide programs include: †¢ Management’s risk assessment †¢ Centralized processing and controls including shared service environments †¢ Period-end financial reporting process †¢ Controls to monitor results of operations †¢ Controls to monitor other controls †¢ Board-approved policies that address significant business control and risk management practices (Lowers, et. al., 2007, p. 161). Once the audit team has completed their examination of CLCs the audit team will then document their understanding through the use of narrative descriptions or flowcharts. The audit team will then use one of those tools to design a preliminary program of substantive procedures for auditing assertions related to the company’s account balances, which is conducted in Phase II (Lowers, et. al., 2007). Phase II – Assessment After the audit team has completed Phase I the audit team will move into Phase II or the preliminary assessment of the company’s control risks. Throughout the course of Phase II the audit team will analyze the control strengths and weaknesses of the company. A company’s strengths are considered as specific features of good general and application controls while its weaknesses are considered as a lack of controls in particular areas (Lowers, et. al., 2007). The audit team’s findings and preliminary conclusions should then be written up and documented in audit files known as the bridge workpapers. In Phase II the audit team will seek to answer the following questions through its assessment. Can control risk be low or less than maximum? Is reduction of the control risk assessment cost-effective? Once the audit team arrives at the answers of those questions it will then specify the controls to be tested and the degree of compliance required. â€Å"The distinction between the understanding and documenting phase and the preliminary control risk assessment phase is useful for understanding the  audit work. However, most auditors in practice do the two together, not as separate and distinct audit tasks† (Lowers, et. al., 2007). Phase III – Testing In the third and final phase the audit team will then perform tests of controls of the specified controls and reassess control risk. During the testing phase the audit team will seek to answer the question of how the actual degree of company compliance compares with the required degree of compliance with the company’s control policies and procedures. The audit team will then document the basis for assessing the company’s control risks, which are less than 100% or assess the company’s high or maximum control risk and design an audit program for the company with more effective substantive procedures. The audit team will then perform a test on the planned or revised substantive procedures. Conclusion An effective evaluation of a company’s internal controls will provide the company with a reasonable assurance regarding the achievement of its objectives in the following three categories: reliability of financial reporting; effectiveness and efficiency of its operations; and compliance with applicable laws and regulations. References Lowers, T.J., Ramsay, R.J., Sinason, D. H., Strawser, J.R. (2007). Internal Control and Evaluation. Auditing and Assurance Services. 2nd ed. The McGraw-Hill Companies. New York City, NY.

Assessment of the Operation Performance Objectives

Assessment of the Operation Performance Objectives A company should be concerned to satisfy its customers requirements for fast and dependable services at reasonable price, as well as helping its own suppliers to improve services they offer.   There are five basic performance objectives and they apply to all types of operation: Quality Speed Dependability Flexibility Cost Flow of flowers in VBA Operations and Critical Points It starts from the sellers section, here the flowers are received and kept in cold storage area and it moved to auction. Next it moves to the buyers section, the area for preparing and packing flowers for shipment. They pack the flowers and moved for to the auction area. With lot of manpower they handle the flowers and plants for packing and moving to the auction area. Once they reached the auction area, flowers are brought into standard container. They packed each flower with a reference number. Then flowers are arranged by its category and placed into different halls for auction. Once the auction done by the buyers for the flowers, lots are distributed on the trolleys to the appropriate packing and loading Ares. Critical Point in this Flow After moving flowers from the sellers section to the buyers sections, and moved from the auction area to the destination, it is critical to preserve the freshness of the flower. Another important critical to take care of the bidding price and flower. The first bidder to press desk operation stops the clock and become buyer of the lot. VBA have to take care of two or more bidder pressed desk operation at the same time. Scientific Management relates to Modern Job Method Design To avoid manual things which lead to error, it is resulted in information processing technology. Job Method Design is used in VBA with its useful features such as task simplification, automation, specialized tools and procedures. This approach stems from the scientific management school of thought, time and motion study and work simplification and specialization. Its primary scientific basis is classic industrial engineering. Jobs high in mechanistic features can be staffed by almost anyone and training time is typically very short. Because mental demands are minimal, stress and overload are unlikely. Errors are less common because mistakes are less likely to occur. Measuring Performance Performance in VBA can be measured based on each Performance Objectives. Quality Speed Dependability Flexibility Cost Doing things right by providing error free goods and services, which will satisfy the customers, is known as quality. VBA operations have to export their flowers to be perishable and so they made the quality inspection by VBA staff and kept in cool storage place. Performance objective speed means doing fast, it means to minimize the time between the order and the availability of the product or service that gives the customer speed advantage.VBA are focused operations to reduce difficulty by having ten thousand people to work at the center to handle seventeen million flowers and two million plants by their information processing technology. To do the things in time for customers to receive their goods or services when they are promised this performance objective known as dependability. In VBA everything tiered to the auction computer so that each buyer can have uninterrupted view of the flower and price. A clear result of responding to a dynamic environment is that organization change their products and services and changes the way they do business.   This performance objective is known as flexibility. The whole bidding process by VBA including processing time takes only a few seconds and the lots are distributed on the trolleys to the appropriate packing and loading Ares. Companies compete with prices is cost.   Low price is a universal attractive objective to customers, which can be achieved by producing goods at lower costs. In order to do things cheaply. The high level of computerization and automation of material flow allow VBA to operate with low cost at high speed and dependability. Business Process Engineering fits into the Improvement Activity The fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical contemporary measures of performance, such as cost, quality, service, and speed encompasses the envisioning of new work strategies, the actual process design activity, and the implementation of the change in all its complex technological, human, and organizational dimensions. BPR, if implemented properly, can give huge returns. BPR has helped giants like Procter and Gamble Corporation and General Motors Corporation succeed after financial drawbacks due to competition. It helped American Airlines somewhat get back on track from the bad debt that is currently haunting their business practice. BPR is about the proper method of implementation Example General Motors Corporation General Motors Corporation implemented a 3-year plan to consolidate their multiple desktop systems into one. It is known internally as Consistent Office Environment (Booker, 1994). This reengineering process involved replacing the numerous brands of desktop systems, network operating systems and application development tools into a more manageable number of vendors and technology platforms. According to Donald G. Hedeen, director of desktops and deployment at GM and manager of the upgrade program, he says that the process lays the foundation for the implementation of a common business communication strategy across General Motors. [12] Lotus Development Corporation and Hewlett-Packard Development Company, formerly Compaq Computer Corporation, received the single largest non-government sales ever from General Motors Corporation. GM also planned to use Novell NetWare as a security client, Microsoft Office and Hewlett-Packard printers. According to Donald G. Hedeen, this saved GM 10% to 25% on support costs, 3% to 5% on hardware, 40% to 60% on software licensing fees, and increased efficiency by overcoming incompatibility issues by using just one platform across the entire company Cause of failures and Prevention Corporate failure models can be broadly divided into two groups: quantitative models, which are based largely on published financial information; and qualitative models, which are based on an internal assessment of the company concerned. Both types attempt to identify characteristics, whether financial or non-financial, which can then be used to distinguish between surviving and failing companies. Quantitative models identify financial ratios with values which differ markedly between surviving and failing companies, and which can subsequently be used to identify companies which exhibit the features of previously failing companies. Commonly-accepted financial indicators of impending failure include: low profitability related to assets and commitments low equity returns, both dividend and capital poor liquidity high gearing high variability of income. Many other lists of symptoms of failure exist. For example, there is a list of 65 reasons on the UK Insolvency website which include:1 Failure to focus on a specific market because of poor research.2 Failure to control cash by carrying too much stock, paying suppliers too promptly, and allowing customers too long to pay.3 Failure to control costs ruthlessly.4 Failure to adapt your product to meet customer needs.5 Failure to carry out decent market research.6 Failure to build a team that is compatible and has the skills to finance, produce, sell, and market. Failure to pay taxes (insurances and VAT).8 Failure of businesses need to grow. Merely attempting stability or having even less ambitious objectives, businesses which did not try to grow didnt survive http://www.accaglobal.com/pubs/students/publications/student_accountant/archive/sa_jj08_mpogue.pdf. Changes affecting customer services, efficiencies in operations and improvement in stakeholder value PARTNERSHIP BETWEEN PRODUCTION AND DISTRIBUTION SPECIALISTS What is so difficult with the split between production and distribution specialists? It is to accommodate the variety of business situations likely to happen. There is no standard way to cooperate between a financial services producer and a distributor and there will not be any before long due to the fragmentation of the banking industry. It means that each couple of partners to- be will have to find and negotiate its own answers reflecting the power relationship as well as both specific strategies to the basic questions: Under what brand and what packaging are the services sold to the end customer? How are determined the service prices? Who does prepare, print and send the invoices? What are the roles vis-à  -vis the contract? Who does sign? Who does endorse the commitments to the customer? To the legal obligations? Who does carry the risks a priori? A posteriori? Who does manage the disputes, claims, litigations? Who does book the accounts? Who does manage the reporting to the regulators? Who may access and use the clients information files? How is organized the after sales service to clients? Who is accountable for the reporting to the clients? How are designed the processes to combine the client orientation with the product expertise? What are the incentives pushing both parties to enhance the global performanc e? The security? The IT efficiency? How are determined the earnings of both parties? In order to get the best result out of this discussion, a bank will have to be as flexible as possible in its ability to accommodate a variety of interactions with its partners IS. Let us take some examples. In the case of a brokerage partnership (where the bank does not play an important role in the contract management after the sale) as many banks have built for instance with insurance companies: The production specialist (e.g. insurance) will supply high level services: a full portal or at least application services supporting complete processes (salesà ¢Ã¢â€š ¬Ã‚ ¦) to be integrated in the portal of the distribution specialist, Conversely, the distribution specialist will supply lower level services such as objects (addressesà ¢Ã¢â€š ¬Ã‚ ¦) or data flows (contracts inputs). In the case of a outsourcing partnership (where the production specialist is more an outsourcer of data processing and back-office processes) as many banks have built for instance with joint ventures set up as shared service providers with competitors: The production specialist will rather supply functional services (scoring, etc.) to be orchestrated within the processes of the distribution specialist, access to simple objects (pending orders, etc.) or even data flows (reporting), The distribution specialist will supply higher level functions than in the first case (pricing decision, risk analysisà ¢Ã¢â€š ¬Ã‚ ¦). A Capacity planning Capacity planning is the process of determining the production capacity needed by an organization to meet changing demands for its products.[1] In the context of capacity planning, capacity is the maximum amount of work that an organization is capable of completing in a given period of time. the phrase is also used in business computing as a synonym for Capacity Management A discrepancy between the capacity of an organization and the demands of its customers results in inefficiency, either in under-utilized resources or unfulfilled customers. The goal of capacity planning is to minimize this discrepancy. Demand for an organizations capacity varies based on changes in production output, such as increasing or decreasing the production quantity of an existing product, or producing new products. Better utilization of existing capacity can be accomplished through improvements in overall equipment effectiveness (OEE). Capacity can be increased through introducing new techniques, equipment and materials, increasing the number of workers or machines, increasing the number of shifts, or acquiring `additional production facility ies. Capacity is calculated: (number of machines or workers) ÃÆ'- (number of shifts) ÃÆ'- (utilization) ÃÆ'- (efficiency). The broad classes of capacity planning are lead strategy, lag strategy, and match strategy. Capacity planning is long-term decision that establishes a firms overall level of resources. It extends over time horizon long enough to obtain resources. Capacity decisions affect the production lead time, customer responsiveness, operating cost and company ability to compete. Inadequate capacity planning can lead to the loss of the customer and business. Excess capacity can drain the companys resources and prevent investments into more lucrative ventures. The question of when capacity should be increased and by how much are the critical decisions. Capacity planning and control is an issue which every operation is faced with. Furthermore it is an activity which can profoundly affect the efficiency and effectiveness of the operation. Capacity planning and control is concerned with making sure there is some kind of balance between the demand placed on an operation and its ability to satisfy that demand. If an operation has too much capacity at any point in time it will be underutilizing it resources, paying out for machinery and facilities and often paying its staff but, because demand is lower than capacity, its costs are spread over two few customers. Therefore its costs per customer will be high. If it has too little capacity, its costs will be low (because its facilities will be fully utilized) but its customer service will be poor because it is either turning customers away or making them wait for their products and services. This will potentially undermine the companys success in the future. Therefore there are serious cons equences of getting the balance between demand and capacity wrong B (Antti Tenhià ¤là ¤, 2008)The different planning methods are by no means mutually exclusive (Meal, 1984). However, a concept called bottom-up re-planning helps to define the main method of capacity planning (Fransoo Wiers, forthcoming; Vollmann et al., 2005). It is the method that is used to ensure the feasibility of master production schedules. The variance in the sophistication of the main methods is interesting because the more advanced methods specifically aim to improve operational per-formance by reducing errors in planning. Some studies, which have focused on non-systematic methods, RCCP, and CRP, have provided preliminary evidence of the more advanced methods benefits (Sheu Wacker, 2001; Wacker Sheu, 2006). Including the finite loading techniques in the comparisons is important because a lot of efforts have been put in their development during the last two decades (Kouvelis et al., 2005). The use of progressive methods would be well justified if there was evidence on the relationship between the accuracy of the planning methods and performance. Hence, the following hypothesis is formulated: 8 Globalization refers to the process of integration across societies and economies. The phenomenon encompasses the flow of products, services, labor, finance, information, and ideas moving across national borders. The frequency and intensity of the flows relate to the upward or downward direction of globalization as a trend. Business operations are those ongoing recurring activities involved in the running of a business for the purpose of producing value for the stakeholders. They are contrasted with project management, and consist of business processes. The outcome of business operations is the harvesting of value from assets owned by a business. Assets can be either physical or intangible. An example of value derived from a physical asset like a building is rent. An example of value derived from an intangible asset like an idea is a royalty. The effort involved in harvesting this value is what constitutes business operations. Business operations encompasses three fundamental management imperatives that collectively aim to maximize value harvested from business assets (this has often been referred to as sweating the assets): Generate recurring income. Increase the value of the business assets. Secure the income and value of the business. All three imperatives are mutually dependent. The following basic tenets illustrate this interdependency: The more recurring income an asset generates, the more valuable it becomes. For example, the products that sell at the highest volumes and prices are usually considered to be the most valuable products in a businesss product portfolio. The more valuable a product becomes the more recurring income it generates. For example, a luxury car can be leased out at a higher rate than a normal car. The intrinsic value and income-generating potential of an asset cannot be realized without a way to secure it. For example, petroleum deposits are worthless unless processes and equipment are developed and employed to extract, refine, and distribute it profitably. Globalization has a huge impact on business operations The extent of globalization unfolds in an uneven fashion to the degree that the question is raised whether international trade is more focused on regional rather than global integration. Trading blocs, such as the North American Free Trade Agreement (NAFTA), the European Union (EU), the Asia-Pacific Economic Co-operation (APEC), Mercosur (South American trading bloc), the Association of South East Asian Nations (ASEAN), and the East Africa Community (EAC), support regional cooperation between geographical neighbors. Georgios Chortareas and Theodore Pelagidis research findings on openness and convergence in international trade indicate that intra-regional trade increased more than global trade in most situations. They stated that à ¢Ã¢â€š ¬Ã‚ ¦ despite the positive international climate resulting from important reductions in transportation costs, the development of new technologies and trade liberalization markets continue to be determined, to a large extent, regionally and nationallyà ¢Ã¢â€š ¬Ã‚ ¦ Within NAFTA, intra-regional exports rose from 34 percent in the 1980s to more than 56 percent in 2000; exports between Asian country members amounted to 48 percent in 2000; and exports within the EU were sustained at about 62 percent. An example of limitations to fair market access for developing countries is that developed countries subsidize agricultural producers with about $330 billion per year, which creates a significant disadvantage for poorer economies without such subsidies. The impact is exacerbated because 70 percent of the worlds poor population lives in rural communities and depends heavily on agriculture. Hence, one of the concerns with uneven distribution of globalization is its impact on poorer economies by perpetuating systems of inequality.

The Abnormal Aspect of Othello :: Othello essays

The Abnormal Aspect of Othello  Ã‚        Ã‚   Let us in this essay discuss the abnormal outlook on life found in Shakespeare’s tragedy Othello. Is a distorted view on life expressed only by the villain?    Iago is generally recognized as the one character possessing and operating by abnormal psychology. But Lily B. Campbell in Shakespeare’s Tragic Heroes tells of the time when the hero himself approached â€Å"madness†:    Othello himself cries:    thou hast set me on the rack. I swear ‘t is better to be much abus’d Than but to know a little.    And then we find him torturing himself with the thoughts of Cassio’s kisses on Desdemona’s lips, and he reiterates the property idea in his talk of being robbed. From this time on, Othello has become the slave of passion. As he cries farewell to the tranquil mind, to content, to war and his occupation, as he demands that Iago prove his love a whore, as he threatens Iago and begs for proof at the same time, he is finally led almost to the verge of madness [. . .] . (165)    Fortunately the protagonist regains his equilibrium, and when he does kill, it is for the noble reason of cleansing the world of a â€Å"strumpet.† On the other hand, the baseness of the villain Iago never alters. David Bevington in William Shakespeare: Four Tragedies describes the irrationality and self-destructiveness of the ancient’s behavior:    Emilia understands that jealousy is not a rational affliction but a self-induced disease of the mind. Jealous persons, she tells Desdemona, â€Å"are not ever jealous for the cause, / But jealous for they’re jealous. It is a monster / Begot upon itself, born on itself† (3.4.161 – 163). Iago’s own testimonial bears this out, for his jealousy is at once wholly irrational and agonizingly self-destructive. â€Å"I do suspect the lusty Moor / Hath leaped into my seat, the thought thereof / Doth , like a poisonous mineral, gnaw my innards† (2.1.296 – 298). (223)    Blanche Coles in Shakespeare’s Four Giants affirms the Bard’s commitment to abnormal psychology, and his employment of same in this play:    That Shakespeare was keenly interested in the study of the abnormal mind is commonly accepted among students. [. . .] The suggestion that Iago may have been intentionally drawn as a psychopathic personality is not new. [. . .] Even a casual scrutiny of a book on case histories of psychopathic patients will find Iago peeping out from many of its pages.

The Metamorphosis of Bertha in Katherine Mansfield’s Bliss Essay

The Metamorphosis of Bertha in Katherine Mansfield’s Bliss Katherine Mansfield’s â€Å"Bliss† is quite an interesting story full of underlying meanings and themes. Upon a first reading, it seems to be a simple story of a woman who feels uncontainable bliss one day, only to have it end when she discovers her husband is having an affair. Although this is a correct interpretation, after a second reading, much more is apparent. â€Å"Bliss† is a story of the revelation of a vibrant young woman, of criticism of society, and of sexual revolution. In order to fully comprehend the work, we see that significance comes from small details. A tree is the major symbol in this piece, and the details assist in understanding why the pear tree is so important. The method of seeing details as they occur allows readers to relate new details to those in the past. A whole and complete picture can be obtained this way with the details clearly laid out chronologically. The story opens by presenting the audience with Bertha Young, a thirty-year old woman who feels as if she is a child again as she â€Å"wanted to run instead of walk, to take dancing steps on and off the pavement, to bowl a hoop, to throw something up in the air and catch it again, or to stand still and laugh at--nothing—at nothing, simply (143).† As she moves down the street, a feeling of absolute bliss overcomes her. This is where the reader begins to believe that he/she will receive an account of this woman’s wonderful day and of something fabulous that happened to her. Quite the contrary is true, however. Bertha walks into her home, and the first negative images of the story are felt. Her dining room is described as â€Å"dusky† and â€Å"quite chilly (143).†... ...e fulfilled. Bertha is a woman who has no desire, and Mansfield feels sympathy for her. Bertha is, however, evolving into a feeling, sexual person as she discovers her want to be with her husband physically. The pear tree is the dominant symbol of this story. Although it shows Bertha’s sexuality, it also shows her resilience. She is able to weather storms and still be beautiful, as is the tree. At the end of the story, the tree is cast in the light of the moon. Since it has already been discussed that the moon symbolizes truth, the moon showing on the pear tree that is still healthy, Bertha will be able to move on and survive. The tree shows that life will go on, as will Bertha, even though she has taken this devastating blow. Work Cited Mansfield, Katherine. The Short Stories of Katherine Mansfield. New York: A.A. Knopf, 1937.

Down To Who? :: essays research papers

Down To Who?   Ã‚  Ã‚  Ã‚  Ã‚  Does the magic of young love ever stand a chance? Down to You tells the story of two college students who fall madly in love with one another after meeting in a crowded, college bar. Throughout their relationship, there are the usual ups and downs of first love. Trust, loyalty, and friendship are all big factors between Al (Freddie Prinze, Jr.) and Imogen (Julia Stiles). Their relationship matures over the years and their love is tested by time and temptation.   Ã‚  Ã‚  Ã‚  Ã‚  Al plays an unbelievably sympathetic role. He’s portrays the â€Å"perfect† boyfriend. He’s very cute, sensitive, caring and he’ll do just about anything for Imogen. Al is an aspiring chef. He has a good family background. Both of his parents are very loving and extremely supportive of his goal for being a chef. They also love Imogen. Imogen is very sympathetic in the beginning of the movie. She and Al hit it off from the moment they laid eyes on each other in that bar. She is a cheery, enthusiastic freshman that is out to have a good time. She is very into art and painting. Al is particularly impressed with Imogen’s artistic talent. She gets scared of their commitment after a summer vacation in France and their relationship gets a little rocky after that. The two have quite an array of interesting friends that give the plot more depth. Monk (Zak Orth) is a good friend of Al’s. He is a porn star that has lost all faith in love. He gives the movie somewhat of a comical twist. After he becomes famous with his adult entertainment career, he develops a Shakespearian way of talking. It sounds very archaic and much more educated. Since he doesn’t really believe in love, he tries to convince Al that love is simply illusion. Al’s other friend Hicks (Shawn Hatosy) is much less complex. He is an average college guy that is pretty much out to get girls. He says and does a lot of comical things throughout the movie. One of my favorite parts is when he is working out, and he has a new hairstyle called a â€Å"mullet†. That’s when hair is short on the top and sides, but long in the back. Al and Imogen’s love is constantly tested in the movie. Cyrus (Selma Blair) is one of Monk’s co-stars in his adult movies. She tried to seduce Al numerous times throughout the movie, but he was strong and persistent about telling Cyrus that he was in love with Imogen.

The Benefits and Costs of Two or More Countries Sharing a Common Currency

Examine the benefits and costs of two or more countries sharing a common currency, and comment on the impact of the ‘one size fits all’ monetary policy of the Eurozone. Normally, the accumulation of a set of countries accepting a specific common currency is known as a monetary union. This involves the countries becoming part of the same trading bloc and accepting free trade policies between the member countries. Since the focus of the question is centrally revolved around the monetary union, the other aspects of the union will not be considered in detail. Naturally, the prime example to use when discussing the use of a common currency is the European Monetary Union. Launched on January 1st 1999, the union boasts a 16 country agreement to use the same currency- the euro. For countries to merge by a single currency requires the merging countries to meet certain criteria. This obviously brings both benefits and costs to the table. Benefits are associated with higher stability of the union as only those countries that meet the minimum requirements can join. This allows the union to ensure that the countries that join add something to the union and add value to the currency. For example, conditions in the European Monetary Union state entrant countries must have interest rates within 2% of the 3 lowest interest rate countries in the EMU and also have inflation within 1. 5%. This is important because if we take a scenario where the inflation rate is excessively high in a country, then this will affect the value of the currency by devaluing it. This devaluation has clear knock on effects as the devaluation will cause the cost of imports to rise. Domestic consumers will also shy away from domestic consumption as they see the high prices and so they will shift their consumption on consumer durables from other countries. Exports would be heavily affected by this scenario as the foreign countries would see the high prices associated with the importing of the goods and shift their interest into consumption from countries with lower relative price levels. Not only does the high inflation associated with the currency affect consumption but also investment. The unstable level of inflation will deter foreign direct investment and also reduce the net domestic investment as the returns to the investment would have a high risk associated. So obviously having specific criteria that member countries must meet help to ensure stability in the union. The negative associated with having these criteria is the one size fits all policy which will be discussed later. There are many costs and benefits associated with having the same currency. There is a key advantage to consumers and residents in the country of having the same currency. The transaction costs associated with exchanging the currencies is eliminated. This means that if domestic consumers were to travel abroad to countries within the monetary union, the identical currency would enable them to spend abroad without the need to swap currencies. This advantage is more of a social benefit as this would reduce stress to the consumer. This is because the consumer would not be worrying about if their money would arrive on time. Also the excess commission associated with changing the currencies is eliminated. Although again this commission only represents a small amount of GDP the advantage is again a social benefit as the consumer escapes the hassle associated with the exchange of the currency- often quite a stressful factor when planning to travel. There is also a benefit associated with price transparency where if the same good is sold in many of the countries in the monetary union, then it is easy for the consumer to compare prices. This should reduce price discrimination and increase competition. This is a healthy scenario for the consumer as they would benefit from price competition- often the price of the good or service falls. Despite this potential benefit there is evidence that this is not the case and that price differentiation exists- an example being price differences within member countries in the EU. The same currency and stability associated with the monetary union encourages transnational companies to invest. This is because there would multiple countries across the zone to invest in and get returns from as they all follow the same currency and would all be under the same central control. This may help the multi-national countries achieve greater economies of scale as there would be easier trading and investment capabilities across the zone. This would lower average costs for firms and increase the relative GDP in the zone. This would increase economic growth. Therefore having the same currency enables economic growth in a country through increased business confidence as there is increased stability. The drawbacks of using the same currency are also quite evident. The main and key drawback is the ‘one size fits all’ policy. Here the monetary policy is controlled by the central bank. Countries have no ability to set the interest rates in the country. This can be disastrous in a country with low consumption or investment levels. This is because if the central bank placed high interest rates on countries within the union, consumption would be further detracted, leading to a drop in economic growth. Therefore the loss of individual control is a major factor that needs to be considered before becoming part of the same currency. There can also be a case where the central bank will set interest rates that accommodate the larger, higher productive countries in the union. This will mean the smaller countries will grow at a slower rate and potentially lead to greater inequality. The one size fits all policy may mean that the union becomes less flexible and therefore the policies can place constraints on economic growth for countries. This can cause inefficiency as the production will not be at optimum potential and will limit countries. Another huge drawback is the effective exchange rate differences would be eliminated. For example, during the economic boom of the early 2000’s, England had a very strong exchange rate compared to the other European countries. This enabled cheap imports for the country, increasing domestic consumer welfare. By switching to the euro, the imports would not have been cheaper and would have left consumers with a drop in welfare as they would not have been gaining through a stronger exchange rate. Overall the costs of switching to the same currency have its drawbacks outweighing its benefits. This is especially the case for the one size fits all policy as this is the policy that loses the country its individuality and means the country loses control of its monetary policy.

Krogstad’s blackmailing of Nora in regards to Nora’s illegal

Henrik Ibsens A Dolls House is the fabrication of Nora Helmer and the events that guide to her independence. At the end of the gambling, Nora decides to feed her husband, Torvald.One central event ultimately light-emitting diode to her decision to farewell Krogstads blackmailing of Nora in regards to Noras ineligible borrowing of money in shape to travel with Torvald to Italy for a recover for his illness. Noras dilemma led to a major keep story change. Nora had to leave at the end of the play because she realized who her husband really was, and what her emotional state actually turned issue to be.Nora began her rouse when she started secretly working to pay defend the money she borrowed illegally for her and Torvalds trip to Italy to cure Torvald of his illness. This event led to her fully realizing that her life was not what it should be. Toward the end of the play, when Nora had stir up her mind to leave Torvald, she states, I lived by doing tricks for you, Torvald .But thats the way you wanted it. You and Daddy did me a great wrong. Its your fault that Ive never made anything of my life. (Ibsen 1879/1998, act 3 80). From this statement, it is obvious that Nora in the end realized the truth about her life. She acted the air division of a child, only living to enjoy first her father, then her husband.Toward the end, however, she realized that those ii men compelled her to behave in a certain way, and that this behavior had stunted her gain from child to adult. She had existed only to please men, thusly making nothing of her life. She decided to leave Torvald, not to punish him, but to make something of her life to gain independence from separate people.Nora had to leave Torvald because she realized that she did not neck him like she thought she did. When Torvald found out about her illegal dealings, Nora thought he would take the blame for her and risk his experience honor.When this did not happen, the image of the good and portentous husband she though Torvald was had been shattered. Once this happened, a domino-effect was created Noras other illusions about her life, such as her having a happy marriage, were also shattered. She began to recognize Torvald for who he really is, and this directly led to her leaving her husband.