Communication For Health Professionals

Question: Examine about theCommunication For Health Professionals. Answer: Correspondence is the procedure or demonstration of utilizing words, sounds, signs, or practices to communicate or trade data to another person(Silverman, Kurtz, Draper, 2016). Relational abilities combined with correspondence procedures and techniques can be utilized to pass on the data successfully. Be that as it may, correspondence obstructions exist in various discussions. Wellbeing experts assume a key job with regards to treatment of wellbeing matters particularly where treatment is required. Clinical advisors have a significant job in guaranteeing that the correspondence with their patient is effective(Silverman, 2013). This investigation is a correspondence between a clinical advocate and patient. It points atcreating a suitable model of correspondence and thinking of the procedures so as to accomplish a successful correspondence. It likewise points in building up a decent compatibility and setting up the potential boundaries to communication.The concentrate additionally incl udes other wellbeing professionalsand the morals considered during the correspondence The contextual analysis includes a young lady by the name Katherine who one of her companion experienced fire in her kitchen a year ago. As of late Katherine has invested a great deal of energy tuning in to her companion understanding and this has left her anxious and frightened. In her fiancs loft she has been diverted twice where she fears that something would burst into flames while supper was being readied. She has been alluded to a clinical guide by a general specialist with a point of finding support on the best way to adapt to the circumstance. In this examination, deliberative model of correspondence is utilized. It includes relational collaboration between the advisor and the patient. The advocate connects with the patient in a dialoguewith a point of giving good influence to the patient. After good influence, consideration of the move to be made by the patient is finished. This model empower commitment with the patient to feature different wellbeing esteems and advantages of lessening uneasiness and fear(Parrott, Crook, 2011). This will include illuminating the patient about her present circumstance, and recommendable answers for the medical issue. This will trigger purposeful activities from the patient to attempt treatment (Eggins, Slade, 2013). This model is suitable on the grounds that the patient is exceptionally associated with an official choice without restricting the opportunity of picking the worth she feels would be fitting. Building a compatibility with Katherine would be the principal task. This is so as to accomplish a solid and a fruitful relationship which may greatly affect the result. One of the techniques that can be utilized in building a compatibility is coordinating and mirroring(Saywitz, Larson, Hobbs, Wells, 2015). This involves learning the patients conduct and expecting a portion of these practices. For example one can expect her body stance or motions. Likewise one can focus on her tone or the speed of her discourse, and afterward coordinate properly. Understanding the attitude of the patient is another enormous factor towards accomplishing a decent rapport(Otuzo?lu, Karahan, 2013). It is acceptable to realize that Katherine is too passionate with regards to issues identified with fire and consequently there could be some trouble by they way she communicates. As an advocate one may have experienced a related situation before where sharing it might make a passionate connection (Gudzune, Beach, Roter, Cooper, 2013). By doing this you can urge her to make some noise thus making a superb relational conversation(Workman, 2012). Correspondence methodologies utilized would be significant in accomplishing positive results. One of the procedures that can be utilized is quiet treatment where the advisor may decide to stay quiet yet mindful so as to see the verbal and nonverbal data brought by the patient (Timmins, 2012). For an instructor to have a lot of clear data, it is fitting to pose inquiries identified with the episode. By doing this, an advocate can manage care as per the patient need. Another key procedure utilized by the advocate is to show up enthusiastic(Moran, Sussman, 2014). This will urge the patient to stay positive in the reactions she gives and considerably progressively keen on conversing with the clinical counselor.The last system is guaranteeing that the guide and the patient talks similarly and being brief. This will improve relational cooperation making the patient to be dynamic all through the discussion without getting exhausted. There are different variables that could make the correspondence ineffectual. The enthusiastic province of Katherine would exceptionally influence the relational relationship with the advocate. The dread and uneasiness in the patient turns into an extraordinary obstruction and this may influence the capacity to plainly clarify her sentiments. The clinical instructor could be having difficulties in adapting to the patients feelings. A test can likewise be experienced in posing inquiries identified with the episode to the patient. Referencing of words like fire to the patient may stimulate prior emotionstherefore expanding the degree of trouble and uneasiness. This renders the correspondence to be inadequate. Culture decent variety is another deterrent towards viable correspondence. Individuals of various culture will in general be diverse in different ways. The language between the guide and the patient may contrast and this may result to mistaken assumptions and misinterpretations of the key message. Nonverbal correspondence, for example, signals and images may likewise be diverse between various societies. For example, an image like gesturing the head may have various implications in various societies making its utilization to be confused. The patient may have a doubt and dread to unveil privileged insights to socially extraordinary advocate. Generalizing could greatly affect correspondence basing on different angles, for example, sexual orientation, religion, and age. This will make preferences subsequently carrying boundary to a successful correspondence. The advisor may likewise be utilizing specialized clinical languages in the line of his vocation which are too convoluted to ever be comprehended by the patient and this makes disengagement in the transformation. Boundaries to successful correspondence can be conquered utilizing different methodologies. Social hindrances, for example, can be overwhelmed by the instructor learning customers culture through doing some exploration. By diving deep in understanding the patient culture, it makes nice sentiment and this may help the customer receptiveness to the advocate. It would even lift the patient certainty to visit again in future. The instructor ought to know about the boundary because of clinical languages and should utilize straightforward language and persistently check whether the customer comprehends through suitable input. This should be possible by posing an inquiry identified with what the conversation involved and assessing the appropriate response. Guiding combined with different experts may greatly affect a patient encountering enthusiastic, conduct and psychological wellness issues. Wellbeing experts like clinical therapist, specialist, and clinical general practices would be significant in illuminating Katherine issues. Analyst would aid arrangement of treatment and finding to the customer. Therapist would help in treatment of passionate sickness which incorporates allocating the correct medicine to the patient. Sharing the information assembled during this correspondence with other wellbeing experts could be of significance so they might be educated on the most proficient method to deal with the patient. This upgrades dynamic and improves collaboration among the experts. One of the data to be shared is about the state of mind of the patient. This will help with deciding the best technique for treatment to be utilized subsequently improving the nature of patient consideration. The instructor have a job in conjecturing whether the state of mind of the patient is acceptable and make proposals concerning whether further screening ought to be made by the specialist. This data may help in improving the patient trust and fulfillment. Between proficient correspondence will likewise point in helping Katherine to vanquish the feelings, fears, and tension. It is suitable to counsel other wellbeing professionalsto help with concocting legitimate subjective conduct treatment. The point of this treatment is to decrease the negative contemplations on Katherine mind. Specialist ought to contribute on making Katherine comprehend that alert measures can be taken to stay away from fire spreading, for example, having fire dousers in her home. Moral issues on the correspondence among wellbeing experts must be thought of. Social insurance experts ought to have great relationship among themselves. This upgrades their administration conveyance to give a superior consideration to patients. Bury proficient correspondence ought to be guided by regard and commitment of every part ought to be dealt with likewise by regard. (Human services Ethics, 2011) Wellbeing experts should cooperate as a group to convey quality patient consideration with every part qualified for get their job in the group. The patients ought to be made to comprehend the job of the colleagues. All the included wellbeing experts should organize towards conveying the data precisely to the patient and the family in an opportune way. In the event that an individual from the group delegates obligation to another wellbeing proficient, it is essential to give enough data about the patient and the advancement in treatment. (Medicinal services Ethics, 2011) This guarantees quality help is conveyed to the patient All in all, plainly wellbeing correspondence assumes a fundamental job particularly to patients with psychological wellness issues, for example, feelings and tension. The model of correspondence picked has an impact on the correspondence adequacy. Successful correspondence can be affected by utilizing engaging methodologies and setting up a decent affinity between the advocate and the pat

The Education Of Nineteenth Century Women Artists Essays

The Education Of Nineteenth Century Women Artists The conventional training of ladies specialists in the United States has taken a significant long excursion. It wasnt until the nineteenth century that the functions of perceived training for these ladies at long last showed up. Two of the most celebrated and first class schools of workmanship that acknowledged, and still acknowledge, ladies understudies are the Philadelphia School of Design for Women and the Pennsylvania Academy of the Fine Arts (the PAFA). Up until the mid nineteenth century, ladies were for the most part trained what is currently called an in vogue instruction (Philadelphia School of Design for Women 5). Their moms raised them to be legitimate, youngsters and master servants in desire for marriage. In the event that these ladies were sufficiently blessed to get a formalized tutoring, they were to consider handwriting, constrained parts of their mom language, and next to no number juggling (Philadelphia School of Design for Women 5). Tragically, this little level of training was amazingly constrictive to ladies. On the off chance that they never wedded or were bereft at a youthful age, they truly had no spot to go. This type of womens training made ages of ladies that were for the most part subject to their spouses and male family members. During the nineteenth century, when the women's activist development was starting, numerous schools were built up explicitly for the training of ladies, for example, the Philadelphia School of Design for Women, and furthermore for the instruction of both. In the first place, womens workmanship schools for the most part showed understudies reasonable uses of craftsmanship. For instance, female workmanship understudies frequently contemplated drawing and lithographing, with the expectation that they would be recruited by mechanical organizations as fashioners. The Philadelphia School of Design for Women was one of the main all womens craftsmanship schools to build up this type of instruction. Established in 1844 by a lady named Sarah Peter, the Philadelphia School of Design for Women was a school like none that had preceded it. Subside was a well off lady of height and chose to begin this school in one of the rooms of her house and to employ an educator to hold standard classes for ladies in craftsmanship and structure. (As a brilliant motivating force for all ladies, educational cost was free for poor people and the rich paid a little whole.) Sarah Peter perceived how genuinely poor the customary instruction for ladies was and she firmly accepted that each lady should remain by her sex, along these lines her thinking for building up this soon to become popular craftsmanship school. From Peter's perspective, she wished to give young ladies some pragmatic training,should [they] so want or the need emerge, for well paying self help, (qtd. in Philadelphia School of Design for Women 6). Notwithstanding her own emotions, she had a quite certain explanation behind beginning the Philadelphia schooltrain ladies to make structures for the citys mechanical lines, for example, materials, lithographing, wood etching, floor covers, and furniture. Starting here on, Peter gave an incredible remainder to directing the School and furthermore went around the U.S. to build up workmanship schools, similar to the Philadelphia, in different urban communities (Philadelphia School of Design for Women 6-11). The Philadelphia School of Design for Women initially had three offices from which young ladies could take classes: drawing, modern, and wood inscriptions/lithography. Most of the ladies were told inside the drawing office, wherein students made duplicates of unique organizations and applied shading and concealing. From here on, contingent upon the teacher, they would advance toward drawings from throws and life (Philadelphia School of Design for Women 23-24). The mechanical division demonstrated the ladies utilizations of drawing, concealing, and shading to the craft of structure. Shockingly, these plans and examples made by the ladies of the Philadelphia School were made sure about under copyright law for quite a while (Philadelphia School of Design for Women 24). In the third division, lithography/wood etching, ladies were shown drawing on stone and cutting in wood. During the principal long stretches of the school, the real printing was done on school grounds. In any case, in later years, most printing was done outside the school by contract. Because of the excellence and flawlessness of the understudies works, extremely not long after the Scho ols foundation, a few of the understudies lithographs were utilized in botanical pamphlets, for example,

Dysfunctional Behavior and Family Patterns

Dysfunctional Behavior and Family Patterns Basics Print Dysfunctional Behavior and Family Patterns By Kathryn Rudlin, LCSW Updated on February 18, 2020 SolStock/Getty Images More in Psychology Basics Psychotherapy Student Resources History and Biographies Theories Phobias Emotions Sleep and Dreaming The term dysfunctional is defined as abnormal or impaired functioning on the part of an individual person, between people in any sort of relationship, or amongst members of a family. Poor functioning refers to both behavior and relationships that arent working and have one or more negative, unhealthy aspects to them, such as poor communication or frequent conflict. This is a term used often by mental health professionals for interactions between people and is often used to describe any relationship in which there are significant problems or struggles. Dysfunctional relationships or situations are often the impetus for getting help in psychotherapy. Many families develop dysfunctional aspects when trying to cope with a troubled teen because family members are forced to adapt to the teens emotional or behavioral problems that impact them on a daily basis.?? Examples of Dysfunctional Behavior A troubled teen who expresses anger by hitting others??A teenage couple that deals with conflict by not speaking to each otherA family in which a parent is drinking daily and family members are afraid to talk about whats happeningA teenager with a dual-diagnosis who uses drugs to deal with their symptoms rather than deal with what is causing them Dysfunctional Family Patterns In dysfunctional families, there are a variety of patterns that can occur. Here are the most common: Parents or teens abuse alcohol and/or drugs??One or both parents have compulsive behavior, such as gambling or overworking, that leads to difficulties for the rest of the familyOne or both parents threaten or actually carry out violence that may or may not involve the children??One or both parents treat the children as possessions and as if the children are only around for the parents own personal needs or satisfactionOne parents treat the children as possessions to the point of not giving their children autonomy and exerting tight control over their livesOne or both parents are unable to provide or simply stop providing emotional and/or physical and financial support Many families have times when these patterns occur, but it is when they start to become the norm that dysfunction occurs. The Effects of Dysfunction on Children When dysfunctional patterns become the standard in a family, the detrimental effects on the children are significant and can be carried into their adult relationships. Some of the potentially damaging effects for children are: Having to take sides in a parental conflictActions of parents not matching their words, which causes a distorted reality??Being rejected or being favoredHaving rigid controls put over everything from who their friends are to how they dressHaving parents that are either way too involved and overly protective or parents who are uninvolved and disinterested??Being ridiculed or ignored when sharing thoughts or feelingsBeing physically abusedFeeling like they have to be the adult in the situation How Family Therapy Can Help Dysfunction If your family is experiencing dysfunction for any reason, seeking out family therapy may be a good option. Family therapy has been shown to be extremely effective in learning new ways to communicate, solving problems between family members and becoming sources of support and strength for each other.??

Biological Psychology - 1169 Words

Biological Psychology Kirstyn Mixa PSY/340 November 19, 2010 Brigitte Crowell Biological Psychology As a study, psychology has many branches within itself. Each thought of psychology throughout history has brought about another school of psychology. Psychology or philosophy enthusiasts and scholars alike have taken interests in not only understanding the themes of psychology but have contributed to the creation of another branch. So, of course, somewhere along the line was the dawning of a new era of psychology: biological psychology. In the following composition the reader will learn the meaning of biological psychology and its significance, history of this branch, pioneers of the sect, relationships bio-psy has with other†¦show more content†¦He also presented a theory to the world of psychology concerning the id, ego, and superego. This theory illustrates clearly how the brain is related to a person’s behavior. Relationships Associated with Biological Psychology The first relationships held with this school of psychology that come to mind are behavioral psychology and cognitive psychology. Focusing solely on behavior was a result of the school of behavioral neuroscience. Behaviorism and cognitive psychology were being studied almost simultaneously; some say cognitive psychology was a result of denying the theories associated with behaviorism while others claim behavioral psychology was a result of the studies of cog-psy. John B. Watson, the founder of behaviorism, stated that there must be physical/external evidence for an investigation to hold validity, (Wolman, B. B. 1989). The term behavioral psychology seems deceiving since biological psychology is also known as behavioral neuroscience and the views of these two schools contradict each other on many occasions. Cognitive psychology rejected behaviorism and brought back many of the theories associated with biopsychology. Unlike behavioris m and similar to biopsychology, cog-psy does not need physical evidence in order to be considered valid. Cognitive psychology and biopsychology share the use of neuroscience and the concentration of actions and reactions of the human body. Assumptions of a Biological Approach to PsychologyShow MoreRelatedBiological Psychology966 Words   |  4 Pages1. Individual Assignment: Biological Psychology Paper †¢ Resources: Assigned readings, Electronic Reserve Readings, the Internet, and/or other sources †¢ Prepare a 700- to 1,050-word paper in which you analyze biological psychology. 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This is expressed by our perceptions, memories, behaviors and interactions with everything around us. We can think about our heredity and genetic makeup and the influences that has on each one of us as an individual. Then think about the stress of poor health and illness and how we may expressRead MoreThe Theory Of Biological Psychology3330 Words   |  14 Pagesknowledge of biological psychology, some on the form of new understandings of technology and new understandings of brain and body communication. The selected research problem is the effects on stress in the reintegration process and how it can create obstacles when it comes to treating and trying assist reintegrating service members and their families. Using the foundational knowledge compiled from years of research in the field of psychology, neurobiology, and bio logical psychology. 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The behaviourist approach believes that people, as well as animals, are controlled by their surrounding environment which has a direct impact upon their behaviour and whether they would suffer from mental illness (McLeod,Read MoreBiological Psychology : The Biological Bases Of Psychological Processes, Behavior, And Learning1722 Words   |  7 PagesBiological Psychology is defined as a branch of neuroscience that focuses on the biological bases of psychological processes, behavior, and learning. Social Psychology is defined as the scientific study of how a person’s thoughts, feelings, and behavior are influenced by the real, imagined, or implied presence of others. Looking at both aspects of psychology we see many similarities as well as major differences. Some function go hand in hand while others could never be more different. The biologicalRead MoreBiological Psychology : The Brain And Nervous System Essay888 Words   |  4 Pages1. Biological psychology, of biopsychology , is the application of the principles of biology to the study of mental processes in terms of bodily mechanisms. The view that psychological processes have biological (or physiological) correlates, is the basic assumption of the whole field of biological psychology. Biological psychology is a hopeful domain, one that has much to offer in terms of improving the quality of life of the healthy as well as those suffering from disorders. It also contributed importantRead MoreBiological Psychology839 Words   |  4 PagesBiological Psychology Melissa Thompson University of Phoenix Biological Psychology When most hear the words biological/psychology, many tend to have trouble rapping their mind around it. Psychology is the study of behavior, so how does biology fit into this equation? Well we have to assume that our brain has influence or somehow effects are behavior. In order to prove or disprove this theory, we have to research the biology and psychology of both the brain and our behavior. So how do

Migrant Youth The United States - 847 Words

In the United States, immigrants come from varying countries in search of the American Dream. This dream entails the belief that their lives can be improved because of the various amounts of opportunities in United States. Due to this, thousands of migrant youth move from Central and South America to Texas in search for a better life. By crossing the Rio Grande border, the migrant youth are escaping the corruption and violence in their native country. Although the migrant youth are in search of a better life in America, the United States has a policy against undocumented immigrants. As a result of this, two perspectives of the migrant youth (that want a better life for themselves by coming illegally) and United States (that have to deport those immigrants who come illegally) arise. In order to analyze migrant youth better, some anthropological methods used are participant observation and interviews. All in all, the spread of migrant youth reveals the idea of the immigration crisis in the United States. In Texas, immigration from Central and South America is a significant issue. Considering there is a great deal of poverty, high crime rate, minimal amounts of jobs, and government corruption in some areas in Central and South America, parents are in a search for a better life for their children. Starting in the spring of 2014, thousands of unaccompanied children surged through the Rio Grande River and into Texas with the help of smugglers. Since there were too manyShow MoreRelatedHispanic Migrant Politics And The Homeland Security State Essay1520 Words   |  7 PagesAlfonso Gonzales provides a riveting and detailed work of Latino migrant politics and the homeland security state. Migration control date back to the mid-20th century. The author presents the actions taken by â€Å"pro-immigrant† groups to counter the hegemonic institutions that criminalize our communities. The book draws on political theory and field research with numerous activists, deporte es, and policy makers across the country ranging from Los Angeles to Washington D.C. and abroad (Mexico and ElRead MoreIn Regards To The Daca And Dapa Programs, President Obama1517 Words   |  7 Pageshistory of immigration. In her book, Small Strangers, historian Melissa R. Klapper maintains that U.S. history is a story of foreign-born youth and children of immigrants. She says: â€Å"As both real people and symbols, turn-of-the-century immigrant children played a vital role [in the] unprecedented productivity and economic growth of their country.† Immigrant youth have been uniquely affected by immigration policies in the U.S. An overview of our country highlights the neglected presence of young immigrantsRead MoreRise Of The American Sanctuary Movement. Before Addressing1522 Words   |  7 Pagesfundamental to address the historical antecedents to today’s widespread undocumented immigration population as well as the elicited political response carried out by the R eagan Administration during the 1980s. In the heart of the Cold War, the United States actively supported and funded the El Salvadorian government — a military government that ran death squads in opposition to anti-capitalist rebel forces. The Salvadorian government, as a means of subverting communism through violence, killed andRead MoreRacism: The Root Of All Evil1022 Words   |  5 Pagesdone to people of color or of different beliefs. In the United States, Native Americans, the indigenous people, were the first to experience this violence, followed by black Africans, and later to various degrees, other people of color as they immigrated to the United States (Ponds, 23). Thousands of Latin-Americans immigrate to the United States every year. 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Market structure Free Essays

Four basic types of market structures are: 1- Perfect competition 2- Monopolistic competition 3- Oligopoly 4- Monopoly There is also another market structure called Monopoly. 1- Perfect competition It is considered more theoretical than practical, because it is very rare. In perfect intention a large number of firms sell identical products, where none of them has pricing power. We will write a custom essay sample on Market structure or any similar topic only for you Order Now There no berries or very easy to enter to the market by any new farm. Prices. For example if we go to normal retail shops to buy vegetables, we will get at same prices from each and every shop. Fish market at Male’ is a very good and a simple example, where inside the market lot of sellers will be selling same fishes. Prices will be set by the demand and supply. Neither buyer nor seller sets the price. It is more like automates pricing. Characteristics of perfect competition include large umber of small firms, identical products, perfect resource mobility and perfect knowledge. 2- Monopolistic competition It is almost like perfect competition where large number of small firms sells similar but not identical products. Relative freedom of entry, to and exit from the industry. It means buyers will have substitutes to choose from. Alternatives to buy for fulfill their needs and wants. Examples of industries structures as monopolistic competition includes, clothing industry, restaurants, and shoes and so on. 3- Oligopoly It is a market situation where products are supplied by small number of firms where ACH of them has influence over pricing and supplies which directly effects the position of the competitors. I oligopoly there is a special case where there is only two producers are called Duopoly. 4- Monopoly This is a market structure where only one producer in a market who has to the total control. Buyers do not have substitutes and have no choice. They have total control over supply and prices. In this market structure, seller is always happy and consumers suffer. They take more profit with a huge marginal value from the products. Characteristics of monopoly includes single seller, unique product, berries o entry and specialized information. The fifth type of market structure which is not included in basic structures is Monopoly. It is upside down of a monopoly where there is only one buyer. If we relate to a Mammalian context, government is the only buyer for the explosives and guns. Where there may be many sellers. Exhibit 1 Perfect Competition Monopolistic Competition Oligopoly Monopoly Number of Sellers Many Few One Barriers to Entry Very Low Low Very High Type of Substitute Products Very good Good substitutes but differentiated Very good differentiated substitutes No good substitutes Nature of competition Price only Marketing, features and price Advertising Pricing Power None Little Little to significant Significant As mentioned above, from 1988 to 2005 telecommunication industry of Maldives was a monopoly market. The following will elaborate how it was a monopoly and what was the situation during the monopoly. 988-2005 Draught monopoly in Maldives It was history that people used to call Draught as â€Å"Blood Suckers†. When the company started in the Maldives in Maldives there was a telecommunication service by cable and wireless which uses USB set to communicate between the islands. After their establishment as one and only telecoms service provider in 1988 they brought a major upgr ade to their network in 1989 in Male and introduced paging service in the Maldives. They also introduced internet service for the very first time in Maldives in 1996 followed by mobile phone service in 1997 which was upgraded to GSM in 1999. Being the only company to provide the service and major share controlled by the government of the Maldives, they introduced services at a huge marginal value. Consumers have no substitution in the market, which lead Draught to grow up and cake huge profit and extended its service to nationwide, while charging extraordinary high charges to cover its expansion costs and making more profit. It is usual to charge more from the consumers in monopoly market structure. In monopoly, always seller is always happy and consumers are unhappy. Some pros and cons of monopoly are: Advantages Disadvantages Large capital scale benefit to the company More money to invest on development Earning national export revenues Price discrimination between consumers Very high market share Restricts production potential Do not actively pursue new clients Poor product quality Unfair wealth distribution Entry barrier for new comers When Waiting telecoms Maldives (presently called Ordered) started their service officially in Maldives on 1st August 2005 shortly after they were licensed on 1st of February 2005, the market structure changed to an oligopoly. Oligopoly In economics oligopoly means that there are few sellers of a certain product in a market. Usually these sellers are always in a high competition with each other. In this type of markets sellers knows very well about their competitors. They have a high power to in pushing their products to the consumers. When on seller makes a change, it will directly affect other sellers. There is a special case in oligopoly which is called duopoly. Which is when the there is only two sellers in the market. Here are some advantages and disadvantages of oligopoly. Advantages Lot of control Ability to fix prices Competitive pricing More profit making Perfect knowledge of the market Price controlling will be a disadvantage for consumers Creative ideas may fail to realist Difficult for small firms to establish in the market Not much of competition No fair wealth distribution Oligopoly in Maldives telecoms industry From 2005 Ordered became the major and the only competitor to Draught. As usual they have initiated their business with a huge investment to make existence of their network across the Maldives. It was a huge challenge for them to establish when there was a well-established and government controlled seller in the marker for almost a decade, market share was 100% controlled by monopolized Draught. Immediately after starting the service in the market by the new comer, the unhappy customers of the monopolized industry started to change their service provider. They started with introductory promotional prices which was far much better than the ajar market controller, which directly affected the business of Draught. Competition, strengths and weaknesses. When there are two or more sellers are there in a market, it is obvious that the competition will be born in the market. It is very interesting to study about the competition between Ordered and Draught. Luckily I have got very good connections at the top levels of both the companies, which made me to sit and talk about their respective companies. I found that they are tightly in competition with each other. Pricing: When Draught was alone in the industry, consumers pay around USED $100 average user used to pay around MOVE 2000 per month for the usage. Call rates are sky high. Rates differ from calls from mobile to mobile and mobile to landlines. When the competition started and if we see current situation, we have choices for individuals and businesses depends on what consumer needs. There are some consumers who want more talk time than data while others doesn’t care about the talk time but data allowance the service provider offers. Those used to spend around 2000 per month now are spending less than 500 per month because of competitive pricing by the competitors. Advertising: Earlier days Draught keeps and average advertising. Unlike that now each and every TV channel is occupied by both Draught and Ordered advertisements. All the islands with more population see those companies’ bill boards near harbors and schools. It is very clear that Ordered is doing more aggressive advertising while Draught use more informative advertising. Corporate Social responsibility: We used to say that both the companies do corporate social responsibility to a certain extent. But in real, in my study I found that rather than corporate social responsibility they both do corporate philanthropy. They do not actively participate in social activities. But they do help by donation some money to do the social activities by others. That is a form of advertisement they both do. They are present in the activities as bill boards. Just to advertise the company name. For example: Thieved league football tournament is always sponsored by one of these two companies. Competitive advantages: Draught uses â€Å"first in Maldives† â€Å"Largest network† and so on while Ordered uses â€Å"best network for smart phones†. Draught is first to come and still holds 65% market share while Ordered is gaining market share at a rapid speed. Bad the backbone of the company is much better with latest technologies while Draught is upgrading its backbone. Subsidized handsets to consumers: Ordered started offering Samsung handset to its consumers with contract for the very first time in Maldives. And soon they will be starting offer apple handsets on contract, while Draught is working with apple to introduce subsidized apple handsets with contract. Apple currently certified Ordered network for their products while Draught is doing upgrades to obtain certification of using Apple products on contract. Is this industry good for the society? Unlike the history of the monopoly in the telecommunication industry in the Maldives, with existing oligopoly (duopoly) consumers are happy now. As is economic theory, human wants are unlimited with the scares resources available, people are still aiming for mush cheaper services with better quality. As mentioned earlier in this report, consumers’ expenses, for the use of telecommunication are decreased by 60 percentages. We never heard of handset for installments by service providers before. But it is started now. We have heard about subsidized handset with contract with carrier locked, from other parts of the world. We never imagined that a small country with a small population like us will get phones on contract with subsidized prices. But it is soon to happen. Unlike perfect competition and monopolistic competition there are no much of sellers. So competition and pricing of the products will not be according to the demand and supply. Sellers will have the power to set the prices. Consumers are very happy when there is a perfect competition and monopolistic competition. Consumers are sad at most when there is a monopoly. But than they used to have, the monopoly. It is an average good for the society. How to cite Market structure, Papers Market Structure Free Essays University of Phoenix Material Differentiating Between Market Structures The purpose of this assignment is to identify applications of economics by evaluating strategies acted upon by firms. Select and complete one of the following assignments: Option 1: Differentiating Between Market Structures in Kudler Option 2: Differentiating Between Market Structures in an Organization of Your Choice Option 1: Differentiating Between Market Structures in Kudler You will apply important microeconomics concepts toward the competitive strategies of the Kudler Fine Food Virtual Organization that affect its long-term profitability. You will evaluate the differences between market structures and review the organization’s strategic plan, marketing overview, market surveys, and other material to evaluate the organization’s competitiveness in the marketplace, including its customers’ views. We will write a custom essay sample on Market Structure or any similar topic only for you Order Now In the process, you will identify the market structure that you believe best applies to this organization, and assess how the market structure positively and negatively affects the firm’s long-term profitability. Complete the University of Phoenix Material: Differentiating Between Market Structures Table located on the student website. Compare the various characteristics of the market structures by completing the table. Kathy Kudler has hired you as a consultant to perform a market analysis, review her competitive strategies, and make recommendations on how she can maximize profits. Read the materials in the Kudler Fine Foods Virtual Organization, including the firm’s strategic plan and marketing overview. Write a 1,050 – 1,400-word market analysis in which you address the following: †¢ Based on the details available to you in the strategic plan, marketing overview, market surveys, and other material, how does the organization compete in the marketplace? What are the strengths and weaknesses of the firm as indicated by the marketing surveys completed by their customers? †¢ Based on your learning, identify the market structure that you believe best applies to this organization. Defend your answer. How does that market structure positively and negatively affect the firm? How does the effectiveness of the competitive strategies in the market structure affect the organization’s long-term profitability? †¢ What competitive strategies would you recommend for Kudler Fine Foods? Explain your answer. Identify real-world organizations that are comparable with Kudler Fine Foods. Format your paper consistent with APA guidelines. Option 2: Differentiating Between Market Structures in an Organization of Your Choice You will apply important microeconomics concepts toward the competitive strategies of an organization that operates in an industry of your choice. You will evaluate the differences between market structures and identify a group of competitive strategies consistent with the market structure that best aligns with the market in which the organization competes. You will assess how the market structure positively and negatively affects the firm and evaluate the efficacy of the structure’s competitive strategies. Complete the University of Phoenix Material: Differentiating Between Market Structures Table located on the student website. Compare the various characteristics of the market structures by completing the table. Write a 1,050 – 1,400-word paper Select an industry. Identify an organization in that industry. Identify the market structure in which this organization competes. Clearly indicate why the market structure was decided upon, and how this market structure differentiates from the other alternatives. Identify three or more competitive strategies of your choice that may be used by the organization to maximize its profits over the long run. Evaluate the efficacy of these strategies in the market structure you identified. Make recommendations related to the strategies the organization might consider to maximize its profits. Format your paper consistent with APA guidelines. How to cite Market Structure, Papers

Pegging The Saudi Riyal To The Us Dollar

Abstract Scholars have argued about currency pegging policy, and whether it is suitable for an economy or not. Based on Saudi Arabia riyal and the US dollar pegging, this essay critically evaluates theories and policy implications behind the two decades pegging of the riyal against the dollar. It also presents the argument of SAMA as well as why the government of Saudi Arabia believes that currency pegging is appropriate for its economic stability.Advertising We will write a custom report sample on Pegging The Saudi Riyal To The Us Dollar specifically for you for only $16.05 $11/page Learn More The study shows that pegging system is under pressure from the public as well as economists who want the government to revalue the riyal. They point at rising inflation and exchange rates of other currencies together with the depreciating value of the dollar as the main reasons to revalue the riyal. However, the government maintains that inflation in the country r esults from domestic processes and not changes in foreign currency exchange rate. In fact, SAMA believes that pegging the riyal against the US shall persist while the US dollar is the global currency of commodities. Meanwhile, experts believe that revaluation of riyal shall happen in the near future. Introduction Currency pegging refers to â€Å"the act of indexing or fixing the exchange rate of one currency against another currency† (Hakes and Gamber 89). Currency pegging is a macroeconomic practice that aims to abridge international trade and lessen the rate of inflation of the pegged currency. This practice usually involves a major currency (mostly the US dollar) and another currency. In order to sustain pegging of a local currency, the Central Bank has to trade its currency against the pegged currency. In addition, the Central Bank must maintain a large reserve of the foreign currency to enable it control the supply of its local currency. The pegged currency must have som e float. This implies that the buying rate remains fixed. Conversely, the selling price has marginal changes to enable other money traders buy and sell the dollar. Pegging currency has some implications for the foreign exchange traders. For instance, the Central Bank takes an active role in the market and fixes the rate of exchange. This practice is also responsible for high liquidity in the market. It prevents a single trader from influencing the market and limits the major currency (Mishkin 71).Advertising Looking for report on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Literature Review and theories Since 1986, the Central Bank of Saudi Arabia has pegged the Saudi riyal against the dollar. However, there are calls to revalue the Saudi riyal and end the practice just like in Kuwait. This is because of the weakening dollar. Experts claim that it is now fueling inflation and making commodities expensive (Mankiw 78). Prices of oils have increased, and the economy has grown considerably. These factors have placed pressure on the government so that it revalues the riyal. However, any changes in the exchange rate of the dollar and riyal shall have negative consequences for several stakeholders. First, the government shall bear negative consequences of revaluation. This is because earnings from oils are usually in dollars, which the country changes to riyal for the national budget. According to Bourland, revaluation of riyal shall â€Å"permanently weaken riyal value based on oil revenues, reduce the size of the national budget surplus, and create a budget deficit† (Bourland 1). The government also has its assets in dollar denomination. Therefore, revaluation would reduce the value of these assets. Second, the Central Bank of Saudi Arabia (SAMA) has categorically stated that the country shall not revalue the riyal against the dollar. This implies that such changes can hurt the credibility of SAMA, affect confidence of consumers in the riyal when oil prices drop or when the value of the dollar increases. SAMA would not allow sudden changes on the rate of exchange. However, gradual adjustments cannot hurt many stakeholders affected by the weakening dollar. Third, foreign investors shall also bear the consequences of revaluation. This is because of an expensive riyal and the introduction of exchange rate shall create uncertainties in the market. This act can discourage investments in the country.Advertising We will write a custom report sample on Pegging The Saudi Riyal To The Us Dollar specifically for you for only $16.05 $11/page Learn More Finally, Saudi exporting companies shall also bear negative impacts of revaluation because their products shall become expensive. This shall make such products to lack competitiveness. On the other hand, imports shall become cheap and still render locally produced goods to lack competitiveness. Revaluatio n of the riyal against the dollar can make sense over a long-term basis as economy undergoes diversification and SAMA seeks for many avenues for independent rates. However, the time to revalue the riyal is not now. Any attempt to change the fixed rate in order to reflect weakening dollar shall hurt the Saudi economy. Thus, the only alternative to ease the rising rates of inflation among the public can come from subsidizing prices of commodities using oil revenues. Exchange Rate For over two decades, SAMA has pegged riyal against the dollar at 3.75. This was a move to stabilize both internal and external value of riyal. SAMA chose the dollar because of its international usages in the oil trade. SAMA relies on sufficient â€Å"foreign exchange convertible to gold† (principally short-term US dollar instruments) to cover the value of all printed riyals in circulation† (Bourland 1). Pegging the riyal against the dollar has served its purpose of â€Å"supporting the economic growth† (Bourland 1). It has controlled inflation in the country. Experts have observed that the rate of inflation in the country has averaged 0.5 percent between 1986 and 2006. The IMF also noted that the country’s real effective exchange rate was stable. The real effective exchange rate considers the country’s currency against those of its trading partners. Changes in the international prices of oil have placed pressure on the pegged riyal. For instance, in 1993, the international price of oil fell. There were also concerns relating to budget deficits. This generated speculations that the value of riyal shall fall. During 1998 and 1999, there were similar experiences due to â€Å"drops in oil prices and economic crisis of Asia† (Bourland 1).Advertising Looking for report on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More However, SAMA used its vast foreign assets in order to control devalue and maintain strength of the riyal. Presently, this pressure does not come from market activities. Instead, it originates from public opinion. The public wants upward revaluation or an end to pegging. Causes of pressure for revaluation The market expectations and perceptions are responsible for calls for revaluation of the riyal. The public argues that the currency strength is not consistent with the rising prices of oil and strong economy growth of the country. In addition, the weakening dollar makes the external value of â€Å"the riyal to reduce as inflation hurts its internal value† (Mankiw 78). Still, there are also regional forces (GCC members) and other global factors, which place pressure on the riyal. The fair value of a currency is difficult to ascertain as most economists show. For riyal, it is not free-floating. Thus, it fair value based on the market forces remain difficult to establish. Howev er, changes in the oil prices should provide ground for revaluation of the riyal. The country also has large account surplus, which demonstrates that pegging undervalues the riyal. Saudi Arabia has â€Å"exceeded 20% of GDP for the last three consecutive years† (Bourland 1). Finally, the Big Mac Index puts it that the riyal is 36 percent undervalued against the dollar (The Economist 1). The index relies on prices of similar products across different countries and attributes the price differences to discrepancies in exchange rates. Data from other trading partners have indicated that the value of riyal has fallen. For instance, the Euro, the British Pound, and other currencies depict these changes. Under these conditions, the free-floating exchange rates from forces of the market shall ensure that the riyal appreciates. Strength against riyal among Saudi’s trading partners Exchange rate movements Percent of Imports Currency Change vs Riyal* Euro zone 25 Euro 12. 1 US 15 Dollar 0.0 China 9 Yuan 5.9 Japan 8 Yen 3.0 UK 4 Pound 13.3 South Korea 4 Won 6.9 India 4 Rupee 9.2 *End 2005 to August 17, 2007: Data from SUSRIS, 2007 Source: the Economist, January 12, 2012 These indicators show that pegging has created undervalued riyal. However, this should not translate to revaluation of the currency after two decades of pegging. Undervalued currencies usually drive competition and growth through encouraging export of products. This implies that Saudi Arabia benefits from currency pegging. Still, SAMA must not revalue the currency because rates of foreign exchanges are not stable. The dollar might gain strength and create a weak riyal. In this regard, the argument for revaluation should follow â€Å"structural economic arguments rather than changes in the foreign exchange markets† (Bourland 1). The rising inflation and exchange rate In the recent past, Kuwait revalued its dinar. It argued that a weak currency was responsible f or inflation. Thus, we can apply the same rationale to Saudi Arabia. The decline in riyal has also come in a time of rising inflation. From 2003 to 2007, the rate of inflation in the country rose from 0.3 percent to 3.1 percent. The weak riyal led to high prices of imported products. In this sense, upward revaluation of the riyal shall â€Å"reduce prices of imported goods and consequently, reduce inflation† (Hakes and Gamber 91). However, imports are not the main contributor to rising prices based on the following observations. First, inflation in the Kingdom results from locally produced goods. This is because of economic growth in the country, which has forced prices of commodities to rise. Inflation mainly results from food prices. We have to note that increments in food prices are global phenomena and do not affect Saudi Arabia alone. In addition, food prices do not relate to changes in currency markets. Prices of other commodities have also increased. Commodities, such as jewelry, gold, and silver, have increased in international prices. However, such changes have not affected majority, and they are not severe like in the case of food prices. Rent prices have changed due to increase in the number of expatriates in the Kingdom. Saudi Arabia: Inflation Breakdown 2003 2004 2005 2006 H1 2007 Foodstuffs beverages 0.6 4.9 3.0 5.3 6.7 Fabrics, clothing footwear -0.5 -2.4 -1.5 -0.6 -2.5 Renovation, rent, fuel water 0.0 0.3 -0.1 0.8 5.3 Home furniture -0.6 -1.7 0.4 0.3 1.0 Medical care 0.2 0.4 0.0 1.3 2.1 Transport telecoms -1.7 -0.6 -2.5 -3.2 -2.7 Education entertainment -0.6 -0.6 0.3 0.3 -0.2 Other expenses services 2.5 0.6 2.4 7.7 4.9 Overall 0.6 0.3 0.7 2.3 3.0 Source: SUSRI: 2007 and 2012 Analysts believe that exchange rates are not the main source of inflation in the Kingdom. The above tables capture various items and services from local and international markets to show that exchange rates are not the cause of problems. In fact, some locally produced goods and services have proved that inflation in the country does not arise from the currency pegging. Trade data from other countries have also indicated that the dollar was not the source of inflation in the country. For instance, products from China have kept the rate of inflation low. China has increased its export to the Kingdom. Share of imports (percent) 2002 2006 Euro zone 25 25 US 16 15 China 5 9 Japan 11 8 UK 6 4 South Korea 3 4 India 3 4 Data from SUSRI, 2007 Revaluation of the riyal can result into â€Å"low prices in some commodities† (Hakes and Gamber 92). However, this approach cannot handle inflation effectively. This is because revaluation of the currency can increase disposable income among Saudis. However, stronger spending power can also create high prices as demands increase. Saudi Arabia Inflation chart from Jadwa/SUSRIS, April 2012 Changes in the values of foreign incomes and assets The revaluation of the currency can lead to low earnings from oils and low values of other assets denominated in dollar. This implies that if the government increases the value of riyal, then its earnings from oil exports shall fall. The fall in earnings from oil exports can implicate the national budget of the Kingdom and create large deficits. Surplus in the national budget shall also decline as spending in public sectors increase. Similarly, all foreign assets of the government shall also lose value based on upward revaluation of the riyal. The upward revaluation of the currency shall affect other sectors such as financial institutions, which may have foreign assets. Companies that also have assets valued in dollars shall also experience decrease in value of their assets because statements shall reflect valuations in riyal. SAMA policy complications For more than two decades, the country has pegged the currency against the dollar. On several occasions, SAMA has stated consistent ly and categorically that it shall not review the current fixed rate of exchange. In addition, SAMA insists that it has mechanisms of fighting off any speculations arising from pegged the rate. SAMA has enough assets, which can afford to â€Å"buy all riyal in circulation if the pegged currency is under pressure from economic forces† (Bourland 1). This implies that the country has to prepare the market for many years for such changes. However, it has not happened. Therefore, the policy of currency pegging shall remain firmly in place in order to maintain the pegging system. Protecting the currency credibility Credibility is crucial in money market. Thus, policymakers must use it to protect the currency as well as the exchange rate. The lack of credibility in a currency market can make traders lose confidence in the currency. This is because of uncertainty regarding the value of currency. Eventually, the loss of credibility can affect investment and economic performance of the Kingdom. Thus, the country cannot afford any abrupt changes to the currently pegged exchange rate. However, the strength of the dollar and decrease in global prices of oil can also devalue the riyal. Protecting locally produced commodities Revaluation of the riyal can result into high prices of products, which do not use the dollar as a benchmark. Still, prices of import products valued in other currencies shall decline. On the other hand, prices of locally manufactured products shall rise. This shall undermine the competitiveness of local products. The country can diverse its economy and encourage the growth of other sectors rather than the oil export. Any revaluation of the riyal shall raise prices of exported goods. As the country records positive economic growth, imports shall increase, and the public shall have confidence in the market. Any revaluation of the riyal shall result into an increase in imports. Thus, imports shall be cheap as exports become expensive. This shall re duce the competitive ability of local products. Foreign Investment Revaluation of the riyal shall reduce foreign investments in the Kingdom. This is because foreign investors shall deal with unstable and expensive riyal. In addition, the readjustment of the pegged rate shall create uncertainty in the foreign exchange market. This situation can deter any form of foreign investment in the country. The country has promoted its foreign investment agenda under the pegged currency. This implies that the country’s agenda of attracting foreign investments cannot be successful if it reviews the riyal. For foreign investors, pegging the currency has created a long-term stability. This has eliminated risks associated with the capital value, which results from free-floating exchange rates. The dollar has also presented cases of volatility. However, this does not imply Saudi Arabia should revalue its currency. Increased Volatility Changes in international oil prices have created a volatil e situation in Saudi Arabia. This implies that the exchange rate has also experienced volatility in the Kingdom. The country has relied on large dollar reserves and the pegged exchange rate in order to control volatile situation, which arises from fluctuating oil prices. Any move to abandon the pegging system can expose the riyal to further volatility. This implies that many oil traders cannot rely on riyal as a currency of exchange. Therefore, country must gradually plan and implement any plan of abandoning the riyal pegging or revaluation of its currency. Other arguments for revaluation of the currency Initially, the GCC had planned to have a single currency by the year 2010. This initiative has faced many hurdles. According to some economists, this scenario may force the Kingdom to revalue its currency (Bourland 1). These economists claim that GCC member states can readjust their currencies in preparation for the launch of the GCC single currency. However, some believe that the G CC member states shall peg the GCC currency to the dollar whereby the riyal shall have a fixed rate. Later, the GCC member states may include a basket of currencies that show their trade relationships. Still, the Kingdom and other states like Qatar have claimed that as long as the dollar stays in the global financial system as the currency of price commodities, they shall continue to peg their currencies to reflect this. Some economists argue that pegging currencies create global imbalances in trade. However, global imbalance results from large gaps in trade between countries. In this case, one country saves excessively as another one spends excessively. This is the case of the US and China whereby the latter is responsible for large trade deficit between them. China has also pegged its currency against the dollar. Revaluation of currencies usually reduces the gap in trade imbalances among countries. This act normally encourages such countries to increase imports and reduce the gap. As a result, the existing trade imbalances decline. Negative impacts of pegged currency First, pegging currency has created conditions in which it is difficult to balance the trade between the two countries. Free exchange rates usually balance imports and exports between trading partners. For instance, in a situation whereby there is a trade deficit, there is an increasing demand for foreign currency as prices of foreign commodities increase. Thus, the foreign products shall not be attractive to domestic consumers. Consequently, it creates a trade balance. On the other hand, if we have a pegged currency, creating a trade balance is difficult. This is because a fixed rate of exchange does not provide an opportunity for the government to devalue currency. This implies that prices of domestic products shall remain high. Second, under the current prevailing economic conditions, it has become difficult to print additional money in order to stimulate the economy with a pegged currency. P rinting additional money may benefit the average household. However, it cannot tame the rising inflation and costs of basic commodities. This is because consumers will not be willing to spend money on expensive domestic products. This implies that the demand for foreign products shall increase. Still, a lack of trade imbalance because of pegging system shall force the domestic production to fall and cause recession. Third, defending the pegging system is usually a difficult task. Saudi Arabia may resort to agent measures in order to make trade possible if the dollar continues to weaken rapidly. Some of these measures may include artificial strategies to reduce the rate of inflation, increase taxes, and reduce supply of money in the market. The strategy provides the government with an opportunity to raise incomes from taxes and allow consumers to purchase local products. These strategies are not sustainable because they lead to high taxes, which make the cost of running a business an expensive activity. Unemployment may come because of high rates of taxes. In addition, foreign companies may move to other areas with low costs of running a business. Fourth, there are also political reasons, which influence currency pegging among countries. For instance, China’s action towards the dollar may result from the battle for supremacy as an alternative source of global currency. However, in some case, the pegging may be away of forging a strong alliance between countries through their trade. This is the case of Saudi Arabia and the US. This system has enabled the two countries to maintain strong relationships despite the Gulf turmoil. However, the situation cannot allow the Kingdom to fix its riyal against other major currencies like the Euro, the GBP and others. In addition, the current may also find it difficult to abandon pegging in its financial policy. Policy Implication From various points of view, it is appropriate for Saudi Arabia to continue with the pegg ing policy. However, as market conditions and pressure mount on the riyal, it will be necessary to implement changes to pegging policy gradually. The two main factors, which shall cause revaluation of the riyal, are diversification of the Kingdom’s economy and the need for independent systems to set the rate of interest as businesses acquire autonomy. However, revaluation of the currency shall take many years because economic diversification is a slow process. Still, the oil market shall operate under the dollar currency for many years to come. The country cannot adjust its interest rate due to its pegged currency. It has to rely on interest rates as the US Federal Reserve provides. This creates limited flexibility in controlling interest rates. If the country deviates from the US rates, then financial institutions can take advantage and make profits from a risk-free opportunity. The ability to set or control interest rate is â€Å"a way of managing inflation in many countri es† (Hakes and Gamber 92). However, this requires involvement of local individuals to enhance their spending habits in order to â€Å"create impacts in adjusted interest rates† (Hakes and Gamber 92). In the Kingdom, consumers’ debt uptake is still low. Probably, abandoning pegging system shall encourage the uptake of credit facilities because the government shall have the freedom to adjust the interest rates in a way suitable for the local economy. The government should also consider distributions of oil revenues by subsidizing costs of basic commodities like foodstuff to its citizens. The government should also consider pegging the riyal to â€Å"a trade-weighted basket of currencies† (Bourland 1). From this policy, the riyal shall match the rate of its trading partners and reduce cases of imported inflation. However, this approach is complex, and the public may not readily understand it. In addition, it can create a volatile situation for the economy of the Kingdom. Thus, it is not a favorable approach. The ultimate aim may be to achieve a free-floating currency in which market forces influence the rate of the currency. However, given the volatility in the international oil prices, any further fluctuation from foreign market exchanges shall create uncertainty in the market. Therefore, the only viable option for Saudi Arabia is to maintain its pegging policy. Summary and Conclusion Saudi Arabia is under pressure from economists and the public to revalue its riyal against the dollar or abandon the pegging policy altogether. This is due to weaken of the dollar in foreign exchange markets, increasing rates of inflation, and the rising value of currencies of trading partners. However, Saudi Arabia is not ready to break this policy after two decades. We can argue that changes in foreign exchange rates are not appropriate reasons to adjust the riyal against the dollar. However, some economic factors should make the country to consider the pegging policy. In its defense for pegging policy, Saudi Arabia argues that rising inflation does not relate to changes in the foreign currency market. Instead, it originates from domestic activities. In addition, inflation in the country mostly affects domestic products rather than imported products. The Kingdom has also stated that it has appropriate mechanisms to handle rising inflation or a weaker dollar. The Kingdom believes that pegging currency has many benefits than its revaluation. Thus, pegging the riyal against the dollar has achieved its purpose. Works Cited Bourland, Brad. The Riyal’s Peg to the Dollar. Jan. 2007. Web. Hakes, Davide and Edward Gamber. Study Guide for The Economics of Money, Banking, and Financial Markets. New York: Prentice Hall, 2009. Print. Mankiw, Gregory. Macroeconomics. 7th ed. New York: Worth Publishers, 2010. Print. Mishkin, Frederic. Economics of Money, Banking, and Financial Markets. 9th ed. New York: Prentice Hall, 2009. Print. The Eco nomist. The Big Mac Index. Jan. 2012. Web. https://www.economist.com/graphic-detail/2012/01/12/the-big-mac-index. This report on Pegging The Saudi Riyal To The Us Dollar was written and submitted by user Ibrahim V. to help you with your own studies. You are free to use it for research and reference purposes in order to write your own paper; however, you must cite it accordingly. You can donate your paper here.