Economic events Essay Example | Topics and Well Written Essays - 2000 words

Economic events - Essay Example Such historical instances of oil shocks had subsequent implications on the world’s economy in diverse ways. From observations of oil supply disruptions for over almost six decades now, from 1944, it is incontrovertible that high oil prices have been the significant cause of world’s major economic recessions. Introduction of Bretton Woods system was one of the post-war reconstruction initiatives undertaken by world leaders from over one hundred states. It is remarkable that the U.S dollar dominated during the world war for being very powerful against other currencies. The Bretton Woods system, a decision made in 1944, allowed for the exchange of different currencies. The conference also resolved to form the IMF. The World Bank was among the institutions formed during the conference. The IMF was created for the function of monitoring the different countries’ rates of exchange. It also served as an institution mandated to lend reserve currencies. The decision was to help countries with deficits to evade any circumstances that would cause devaluation of the country's currency and cause instability. The World Bank’s mandate was to issue capital needed to the underdeveloped countries as part of post-war reconstruction of the global economy. ... By the end of the second war, the U. S still experienced a relatively stable economic state compared to other countries. All the nations, therefore, decided to trade in dollar which was pegged to gold. The United States expressed its dedication to redeeming the international holdings of the dollar. The rate set was thirty-five dollars per ounce. This was the greatest reason for the stability in the financial system experienced after 1944. The gold standard set in 1944 ensured stability in the rates of exchange. Under the Bretton Woods system, there were exclusively limited conditions that would call for a reform of the value of gold in relation to the currency of any country. It led to the ceiling of the domestic money supply of every country. The 1970s, however, presented several challenges to the U.S currency following several economic conditions, which brought in many challenges to the stability of the dollar. There were the economic effects of the Vietnam War, for instance. The U .S, in 1971, made the decision that was later to have an effect on the entire world economy and cause a collapse of the stability that prevailed since 1944. Without consultations, the U.S disregarded the gold standard set in 1944. Floating rates started to function as compared to fixed rates after the uplifting of the pegging. Market trading remained the determinant of the currency value of all currencies. The effects of uplifting of the pegging on the oil price had extensive implications and were a cause of instability. Since the dollar is the global currency used in the crude oil market, a weak dollar would attract a high price of oil. An example is the high price of gasoline that

Entrepreneur Project I Research Paper Example | Topics and Well Written Essays - 1250 words

Entrepreneur Project I - Research Paper Example blindness and deafness); they may also suffer from several mental disorders. In addition, some of the aged may not have people to effectively take care of them as some may be living alone, either because they were not married or did not have enough savings to buy or build a house after retirement. This necessitates the need for the creation of several programs, which will specifically target the aged and ensure that the quality of the life that they lead is not compromised by the fact that they are aged. Entrepreneurs and businesses should therefore look for ways to take advantage of the situation in order to get financial benefits. For instance, different products can be devised which will mainly target the aged in the community. One such product is the establishment of a paid up aged care; this facility will be able to provide the aged with the services necessary for the improvement of the quality of their lives. Moreover, the services provided will specifically target the old and will therefore incorporate different requirements that the aged need. Due to the fact that the business targets only a specific demographic sector, the business must effectively know how to deal with the uncertainties or future changes in the demographic fraction of the population. America currently has the highest number of the aged population in history. This aged population is expected to reach about 80 million as the baby boomers start reaching the retirement age (Cress 2007 p 211). In addition, this population needs specialized care and hence providing ready demand for the company’s services. Florida has a population of about 18 million; of this population, 17.2 percent are aged above 65 years. This is far much higher than the national average of 12.9 (US censors bureau 2009). However, even though the statistics of the aged appear to be large, only a small fraction of the population is fully capable of settling their