Modeling the Exchange Rate and Balance of Payments Essay

Modeling the Exchange Rate and Balance of Payments - Essay Example Many countries use financial institutions, central banks, to invest in several monetary and financial systems and other resources in their quest to predict exchange rate and determine international trade as well as a balance of payment. Several theories have been forwarded to determine the value of exchange rate and balance of payments, and in this summary, we will discuss the determinants of a balance of trade, the IS-LM-BP approach and the monetary approach in relation to the two (Melvin and Norrbin, 225). The elasticity approach to the balance of trade explains that the economic behavior involves satisfaction of the unlimited wants with limited resources. One effect of this is that consumers and business firms end up substituting the expensive good for the more affordable ones as prices change to stretch their budgets as far as they can. Relative prices normally change relative to demand and supply for individual goods. Such changes may be caused by an alteration in tastes, the method of production, government taxes, or subsidies amongst other possible causes. If the changes concern the prices of goods at home relative to the foreign goods, the international trade patterns may actually be altered. The elasticity approach to the balance of trade involves the way changing of relative prices of the domestic and foreign goods will affect and possibly change the balance of trade. Furthermore, it provides an analysis of how the issue of devaluation affects the balance of trade in relation t o the elasticity of supply and demand for foreign exchange and foreign goods in the concerned market (Melvin and Norrbin 226). The devaluation of a country’s currency domestically normally raises the price of foreign goods in relation to the domestic goods within that country.

Development of new products and services in hotels Essay

Development of new products and services in hotels - Essay Example Techniques of research are often based on epistemologies, which differ considerably across disciplines; there are numerous forms of research (Assante, Mulaj, & Steed, 2011; Bansal, & Corley, 2012). A methodology generally involves a framework upon which the search for solutions to a problem is based (Bansal, & Corley, 2012). Methodologies encompass specific components like the stages of research, operations, techniques, and the tools used (Hassanien, & Eid, 2006). A methodology includes several approaches, with each being implemented in different aspects as the project rolls out (Bourgeault, 2012). The research is often divided into two categories: quantitative research and qualitative research (Mason, Augustyn, & Seakhoa-King, 2010). The following sections of the paper examine the research methodologies used by Hassanien and Eid (2006); and Hossain, Kumar and Kumar (2010) to investigate the significance new product development in hospitality industries found in the West and North Af rica. II. Overview of the Chosen research articles (a) Article # 1 Hassanien and Eid (2006) examined the outcomes of studies and empirical research related with the involvement of key stakeholders and skills of hotels’ staff in ensuring that new product development (NPD) processes are successful during implementation. The research offers a deeper exploration of the creative behaviours and operations that can yield positive outcomes when introducing new services within a modern hotel facility in the northern African region. The outcomes of the research are of immense benefit to not only the key stakeholders in the Egypt’s hospitality industry, but enables scholars who are specialized in the hospitality management as well. The researchers arrived at the results by undertaking a survey targeted at marketing executives in various categories of the local hotels (Hassanien, & Eid, 2006). The outcomes reflected significant variations between the hotels depending on their capa cities and size. More specifically, the researchers established that 5-star hotel facilities show a better understanding and implementation of NPD than the smaller facilities in the 4-star or 3-star categories. The latter two categories of hotels have shown a lower predilection to incorporate NPD processes into their corporate culture, especially in marketing campaigns. And by touching on the benefits and pitfalls that hotel management teams are likely to experience, the researchers are spot-on regarding the right implementation process of NPDs in the various categories of hotels. (b) Article # 2 The research by Hossain, Kumar and Kumar (2010) explore the impact of new service developments (NSD) practices in hotels. The authors provide an assessment of the prevailing NSD models by carrying out researches that can be used as pointers to the innovativeness of hotel facilities in two key Western hospitality industries; the United States and Canada. The researchers identified innovative services, and evaluated them with keen eyes in order to evaluate their effectiveness. The research findings revealed stark variations in the various innovation