Internship Report at National Bank of Malaysia (BNM)

Internship Report at National Bank of Malaysia (BNM) Introduction My internship was performed in the Republic of Macedonia, more exactly, at its National Bank. This institution is the one that deals with the macroeconomic policies applicable in the country. These policies allow a stable and long term economic development of one country. I opted for Macedonia because it is the country of my origins, and also because I think one day I will be able to work for one of the Macedonians institutions. So this internship will help me find out how these kind of institutions really work, what is the aim of their work. Macedonia is in a transition process, that undoubtedly is always characterized by numerous difficulties, which are, in general, very similar to other countries living these same processes. The mail purpose of the government of Macedonia is the integration of the country in some international organizations such as NATO or the European Union. While its integration in NATO would secure the borders of the country, and a long term stability (as we know that some under ethnic conflicts had risen in 2001), the integration in the EU, which is far more complicated and demands a very high responsibility of the government, will boost the economic development of this small country with a little bit more than 2 million citizens. The importance of the National Bank, in terms of these integrations, is unavoidable. The Bank is responsible for the monetary policy and economy, for important indexes such as Inflation Rate, CPI (consumer price index), which indexes help to clarify the development of the country in a long term. The economic stability, and the territorial stability, are two very important things, in order that Macedonia could be part of the big European family, and become a potential country that will attract foreign investments at a much higher degree. I. Description of the institution About NBRM Organization chart Functions : the National Bank shall perform the following functions: establish and conduct the monetary policy; regulate the liquidity in the international payments; establish and conduct the Denar exchange rate policy; handle and manage the foreign exchange reserves; regulate the payment system; grant founding and operating license to a bank and a savings house and supervise the banks and savings houses; grant a license for performing services of prompt money transfer and supervise the operations of the entities performing services of prompt money transfer in accordance with a law; grant operating license to foreign exchange bureaus and supervise their operations in accordance with a law; issue banknotes and coins perform activities for the account of the central government and the government administration bodies. THE MONETARY POLICY: Monetary Policy-Design Designing of the monetary policy The National Bank of the Republic of Macedonia (NBRM) is a central bank, and accordingly, the only bank of issue in the Republic of Macedonia. Its primary objective is to maintain the price stability, thus being independent in the performance of its functions. The National Bank supports the economic policy of the country and the financial stability of the country, without jeopardizing the achievement of the main objective, and adhering to the principles of market economy. In line with the legally set functions, the NBRM designs and conducts the monetary policy at a level of the national economy. At the end of the current year, in line with the previously determined macroeconomic framework, the NBRM works out the Projection of the monetary developments for the following year, adopted by the NBRM Council. Monetary policy goals The maintenance of the price stability is a primary objective of the National Bank of the Republic of Macedonia, established by a Law. The establishment of this goal is in line with the current EU monetary policy layout, based on the empirically confirmed perceptions that the price stability creates most favorable macroeconomic environment for accelerated economic growth sustainable on a long run. Until 1999, the inflation in the Republic of Macedonia was measured through the retail prices index, while since 2000 it has been monitored by the costs of living index. In order to attain its ultimate goal, the NBRM determines an intermediary target of the monetary policy. Thus from April 1992 to September 1995, the NBRM was applying the strategy of targeting the money supply M1, as an intermediary goal of the monetary policy. Since October 1995, the NBRM has been implementing monetary strategy of targeting the nominal exchange rate of the Denar against the Deutsche Mark, i.e. against the Euro since January 2002. Accordingly, the maintenance of the Denar exchange rate stability is an intermediary goal of the monetary policy. The exchange rate targeting strategy is applied due to the following: a. the importance of the exchange rate in a small open economy (the Republic of Macedonia exchanges around 80% of the GDP with abroad); b. the need of nominal anchor for maintenance of financial discipline and credibility; c. high degree of currency substitution (over 40%) and d. exchange rate transparency and the possibility of daily monitoring by the economic agents. Money supply and money demand The money supply in the Republic of Macedonia is subordinated to the maintenance of the Denar exchange rate stability, as a nominal anchor in the economy. The amount of money supply is determined in line with the need of regular execution of goods and money transactions, i.e. the economic activity in the country. The money supply is monitored through the following monetary aggregates: M0 – reserve money (currency in circulation, banks account with the NBRM and cash in the banks vaults), M1 (currency in circulation and transaction deposits), M2 (M1, Denar and foreign exchange deposits with a maturity of up to one year), M3 (M2 and restricted deposits) and M4 (M3 and Denar and foreign exchange deposits with maturity of over one year). The movement of these aggregates is monitored in line with the adopted projection. The money demand, by the definition, is determined by the income level, the price level and the short-term and the long-term interest rates. On the basis of the prev ious practical experience, the money demand in the Republic of Macedonia is relatively unstable, primarily due to the transitory and the external shocks, as well as the effect of the currency substitution. Interest rate policy and transmission mechanism With the monetary policy being directed towards preserving the Denar exchange rate stability, the interest rates and the money supply are endogenous variables, determined by the achievement of the intermediary goal. The NBRM, through its interest rate policy, sends monetary signals to the banks, thus making efforts to influence their lending and deposit interest rates. The lowest interest rate of the NBRM is the discount rate, whereas the highest is the interest rate on the Lombard credit. Currently, the referential interest rate in the economy is the interest rate registered on the CB bills auctions, with respect to its close relation with the interest rate on the Money Market. Due to the higher liquidity in the banking system, no need of organizing credit auctions has been registered over a certain period. However, the transmission canal of the monetary policy through the interest rates in the Republic of Macedonia is still insufficiently developed, considering the insufficiently d eveloped financial market, the rigid interest rate policy of the banks and their insufficient responsiveness to the monetary signals of the NBRM. DENAR EXCHANGE RATE POLICY Exchange rate policy According to the National Bank of Macedonia Law (Official Journal of Republic Macedonia nr. 3/2002 51/2003), the National Bank of Macedonia establishes and executes the denar exchange rate policy in order to achieve the main purpose – the conservation of the price stability. Current foreign currency system According to article 33 from the currency policy law, the denar rate is determined by the simple rule of offer and demand for foreign currencies in the currency market. The denar rate in relation with the Euro is fixed by the reports from different banks that take part in the currency exchange market. As for the other foreign currency, the rate of the denar is determined by the relation between these currencies and the Euro rate, which is fixed by the European Central Bank. The buying and selling rate is calculated with the addition and deduction of 0.5%. In fact, this is the way how the National Bank of Macedonia exposes every day the approved currency rates on the Currency List. The execution of the currency policy According to the denar rate targeting strategy, as an important element, the goal and also hard task of the monetary policy is to keep stability between the denar and the Euro rates. If there are tendencies to the depreciation or appreciation of the denar, the National Bank interacts by selling or buying respectively, foreign currencies, after what the monetary strategy becomes respectively more restrictive or more expansive in relation to the projected targets. Relationship between the monetary and the currency policy There is a huge dependence between the monetary and the currency policy. It is important for the Macedonian economy to keep a stable exchange rate with the euro, in order to keep price stability in the country, which element will lead to a better life for all its citizens. In October 1995 the monetary targeting strategy was overturned, and a new strategy was embraced, called the targeted nominal denar rate strategy. With this new strategy, the rising of the money supply is transformed into an instrument that helps, directly, on the stability of the currency rate, and indirectly, on the price stability. Currency reserves When the Macedonian National Bank became independent, it had no currency reserves at all. It all began in 1992, when the National Bank began creating its own reserves. The amount of foreign currency reserves is rising permanently. While in 1992, there were around US $60 million, it became US $803 million in 2003, which represents the amount of four months of import. According to article 25 from the Law on the National Bank of Republic of Macedonia, the management of the National Reserve is in the hands of the National Bank itself. It has also to duty to prepare and consolidate reports every 6 months. On behalf of the management of the National Reserve, the National Bank, according to article 28, is loyal to the principles of awareness, liquidity and profitability. The exchangeability concept The Macedonian currency has a present exchangeability. In June 1998, Macedonia has accepted article nr. 8 of the International Monetary Funds Statute, which stated that all currents transactions between residents and non-residents can be completed freely, without restrictions. As part of this agreement between the National Bank of Macedonia and the IMF, was also the liberalization of capital transactions. The direct investments of residents abroad, and of non-residents in Macedonia, are now free, except of a taxation fee in order to register by the ministry of economy. Non-residents can now invest into any Macedonian company, to start their own companies, and to buy shares so that they can become shareholders of all enterprises listed on the Macedonian Stock Exchange (MSE 10). The profit and all the capital investments can be taken back to the non-residents place, if there are no more liabilities towards the government. Non-residents, on behalf of diplomats, and other embassy representatives, have the right to buy real estate, but under certain conditions of demand and registration at the Central Registry of Macedonia. Residents may distribute and sell native shares at foreign financial markets if he/she has the permission from the Commission of shares and financial instruments. Credit transactions are also liberalized, in and abroad the country, so that the funds can move loosely, but for that, the National Bank needs to be informed. Residents may use foreign currencies obtained from transactions made with a foreigner to clear any debt he has, or also use them in the currency market to exchange them into the national currency. In order to pay with a foreign currency abroad, a resident may â€Å"buy† these currencies in exchange offices. Other residents, such as physical persons, can also exchange their money for other purposes, not only for business. As for the opening of an account abroad, residents need to be authorized by the National Bank itself. It is possible for any non-resident to open a denar or foreign currency account, and to use it whenever he/she wants to, with no objection. But there is a limitation on the amount of payments a month, this limit is 10.000 Euros. But, in case of disorder of the balance of payments or the financial system, the National Bank can prevent the circumstances to worsen by application of some restrictions. PAYEMENTS SYSTEMS IN MACEDONIA General Features of the Payment System The payment system represents a sum of instruments, procedures and infrastructure for money transfer. It is of great importance for all economic agents since it enables fast and efficient payments in the national economy. The payment system of the Republic of Macedonia can be presented schematically as: The central bank, which runs the accounts of the deposit money institutions – the banks, is at the top of the payment system. In the payment system, the central bank has the following functions: operational, development and function of monitoring of the other payment systems in the country. The banks, which run the accounts of other legal entities and natural persons, consist the following level. Running of the accounts is decentralized – which means, each bank runs only the accounts of its clients. In order to execute and perform prompt settlement of the large value payments and urgent interbank payments, the system of the central bank is used. For netting the small value payments, a specialized institution – the Clearing House for small value payments is used, while the results of the netting are later settled in the system of the Central Bank. Start of the New Payment System On July 30, 2001, the functional implementation of one of the most complex reforms in the Republic of Macedonia, the Reform in the Payments System, commenced. This Reform is managed by a Steering Committee comprised of experts from the National Bank of the Republic of Macedonia, the Ministry of Finance, the banks, the Payment Operations Bureau and eminent professors from the Faculty of Economics in Skopje. This start represents a beginning of a new payment system designed according to the payment systems of the countries with developed market economies. The new payment system enhances the competitive component of the banks and represents a prerequisite for implementing new banking products which increase the efficiency of the banks and the banking system as a whole. The competitiveness induces new IT tendencies in the banking operations. The reform enables more efficient monitoring and management of the liquidity of individual banks, as well as better efficiency in conducting the monetary policy. The previous payment system (effective until December 31, 2001) incorporated strong static components and limitations both regarding the options, as well as technological limitations, which represented an obstacle for the future development of the financial infrastructure and the financial system as a whole. The implementation of the new payment system was encompassed a transitional period from July 30, 2001 until December 31, 2001, during which besides the implementation of the new systems, the Payment Operations Bureau continued with its operations as a specific payment system. The National Bank of the Republic of Macedonia has important functions in the new payment system, which are stipulated in the new Law on Payment Operation. BANKING SUPERVISION According to the Law on the National Bank of the Republic of Macedonia and the Banking Law, the National Bank of the Republic of Macedonia is the only supervisory authority responsible for licensing and supervision of banks and savings houses in the Republic of Macedonia. The main purpose of the supervisory function performed by the National Bank of the Republic of Macedonia is the maintenance of safe and sound banking system and protection of the depositors and other creditors that had invested their money in the banking system. The National Bank of the Republic of Macedonia has established supervisory standards that are incompliance with the international standards and practices set by the Basle Committee on Banking Supervision. Supervisory standards While performing their activities, banks are obliged to comply with the existing supervisory standards that are implemented for the purpose of limiting the banks risk exposure. The supervisory standards established and implemented by the National Bank are derived from the Basle Committees principles and the European Directives. The most important standards implemented by the National Bank are: capital adequacy, i.e. maintenance of an adequate capital base that will enable covering of the risk profile of banks. The capital adequacy ratio calculated as a ratio between the banks own funds and its risk weighted assets, must not be lower than 8%; criteria for classification of on-balance and off-balance sheet asset items of banks according to their risk level and determining adequate amount of impairments and special reserves for coverage of the banks potential and/or established losses; exposure limits as a ratio between the total on-balance and off-balance sheet exposure to a single persons and group of connected persons and the banks own funds; limits of exposure to the FX risk and the manner of managing this type of risk; limits on investments in land, buildings, equipment and equity holdings. ISSUE COINS AND BANKNOTES 1. Legal Tender in the Republic of Macedonia Legal tender in the Republic of Macedonia is the Macedonian Denar, consisting of 100 Deni. The National Bank of the Republic of Macedonia has the exclusive right of printing and issuing banknotes in the Republic of Macedonia. Macedonian banknotes in circulation (issue 1996 and 2003) :  · 5000 Denars issue 1996  · 1000 Denars issue 1996 and issue 2003  · 500 Denars issue 1996 and issue  · 100 Denars issue 1996  · 50 Denars issue 1996  · 10 Denars issue 1996 2. Printing and characteristics The lower banknote denominations of 10, 50 and 100 denars are printed in Macedonia, while the banknotes of 500 and 1000 denars (1996 issue) are printed at â€Å"Thomas de la Rue†, London. The last banknote issue of 2003, 500 and 1000 denars denominations, was also printed in TDLR. The Macedonian banknotes posses several security features like watermark, windowed-thread, intaglio print, latent image, micro-text, see-through feature, and optically variable ink. 3. Institutions which Act as cash collectors Institutions which act as cash collectors are the National Bank of the Republic of Macedonia and commercial banks. II. Internship description As I am from the Republic of Macedonia, I thought maybe doing an internship there would be a plus for me. I graduated in Macedonia in 2002, so I really wanted to go back there to an internship, which I think it was a good idea in order to put together what Ive learned at university and whats happening in the real life out there. I think it is crucial for a student, or a future graduated student, to learn and make the link between theory and real life practice in order to get ready and not surprised or shocked when first meeting life for real. The reason also why I chose Macedonia to complete my internship, is that one day after graduating in Belgium, to be able to go back there, and work for my country, which would be much easier if the internship was done there, especially at a very important institution, its National Bank. But, it is also important to say that in this kind of countries, it is difficult and complicated to find a company, private or public, that would accept a future graduated student to do his/her internship there. This is also the position of national institutions. In such countries, that are living in transition, and where this process takes so long, and has many difficulties, the problem of informal economy is very present in the everyday life. This is the reason why, it is so hard to find a company that would offer you a normal and proper internship, unless, of course, if you may know the head of the company or institution. I was, unfortunately, not in this case of knowing somebody â€Å"important† to either private or public institutions. Regardless this fact, I still applied and send the demand of such internship at the National Bank of Macedonia. It took very long to get a response from them, but it finally came positive. After this, they were some complication, especially during the 2007 summer, for me to begin with the internship. In fact, there were some procedures to respect, which were not told to me and which I didnt know. Above all, the extreme heat of that summer had an impact on the government to reduce much of the working hours, especially in its institutions. That is the reason why I could not manage to start the internship that summer. My internship could finally be done during the three months of holiday granted to last year students at ICHEC. I was accepted by the human resources manager at the Bank, who interviewed me, especially to learn about my background, such as school, political, interests on the National Bank, and so on. After that I could finally begin with the internship. I was told to begin the very next day, after signing a convention of behavior at the Bank. I was supposed to start at 8 am and finish at 4 pm, which is the work time of each functionary working at this institution. After the interview, the Human Resources Manager advised me, in relation with my interests, to do the internship in the Research and Development department of the National Bank. It was a little confusing, because in general, students are allowed to come for their internships a few hours during working days, while I was invited to go there all day long. It was a something I didnt expected at all when I applied for this internship. But the conditions were given by them, so I did not wanted to react about that. But it was not the best manner to execute and learn about my topic. When I begun the internship, I had the task to read the reports that are issued by the National Bank itself. Actually, I didnt understand why I had to do this, but everybody told me they had done so when they started work at the Bank. It was also the way internship students started at this institution. It was a little confusing, but I had to rely on this task. This reading of the reports helped me though to learn further more of the different indexes that are studied, and their importance in order to measure the development of the macroeconomic policy of Macedonia. But I would have been more satisfied if I was told before beginning this internship to do so, in order to not waste my time reading during my internship, which was limited in time. First, I had a topic that seemed very clear and comprehensive to me. But after a few days at the Bank, I understood that something had to be changed in this topic because as I was entering my internship everyday more and more, I could see that my topic was too vast, and it could not really help me for my final paper, which would be related with the internship. After many consultations with my internship advisor, and also with participation of the head of the sector, I decided to somehow change my topic. At the beginning, I was opting for a study about the macroeconomic indexes, such as Inflation Rate, Unemployment Rate, CPI (consumers price index), etc. These indexes are studied and performed by the National Bank of course. But as I said, it was really a vast topic, which could have gone nowhere, and finally not helped me much to the purpose of the internship. So I opted for a change. This change was more directed towards the energy sector of Macedonia, and how energy has an influence on the economy of this country. This idea came, as I said, after consulting people working there, but above all, after attending on a presentation performed by a professor of the Cyril and Methodius University of Skopje for the National Bank. The professor presenting was Dr. VlaÃ… ¡ko ÄŒingoski, and the topic: The Electro-energetic Situation and Perspectives of Republic of Macedonia. The presentation was mainly on the problems concerning the energetic sector of Macedonia, from its independence until today, the current situation of energy and also the most probable and real manners to overcome the negative balance on this sector. This presentation really opened my path, and helped me a lot into finding a new and more specific topic for my final paper. Other presentations regarding energy, and the energetic sector concerning Macedonia were performed after. I attended all of them, as my interest was since balancing toward this topic. I was allowed though to be present at these meetings, so it helped me further more in my focusing. The other presentations were performed also by professors, or people working in the management of electro-energetic companies. But my internship wasnt all about attending presentations, and taking notes of them. As I said, I was accepted at the Research and Development department of the Bank. This department, which was the one where my main advisor worked, is the principal responsible for the construction, consolidation, editing, and writing the annual, trimester, monthly, and even two-weekly reports concerning the development of the economical situation of Macedonia, and comparing them to other countries, mainly from the Balkans. These reports have different parts, in general. The first part, concerns the economic development in a global point of view. Next we have the development of Macedonia, then the monetary development, the capital market, etc. Generally speaking, they are specific teams that work on a specific part of these reports, but the teams can sometimes change. My main advisor was more active on determining and calculating macroeconomic indexes, and then, comparing them with the same indexes of one specific period of last year, or same periods in the past. That was in general his role, and the one of his team. In fact, I was introduced at his computer to see how things are going, working thus with these indexes. All indexes were calculated via Microsoft Excel, and a software, which is frequently used by National Banks in the region and wider, called eViews. I was not able to have this software on my computer, as it is a program only the National Bank of Macedonia may use. This is why I couldnt really get deep into this software, in order to understand how it works, and what data or information it offers. So, the whole things was to take right data, transform and calculate them into indexes, compare them with same indexes of past periods, design different graphics and tables so that it is more comprehensive to the reader, and finally do the interpretation of the results. The data I mentioned before, which are the base of these indexes, are delivered from the Statistical Office of Macedonia. It is this office that has almost all statistical data for the population living and working in Macedonia. It also has information about the housing sector, which is important to calculate some indexes, such as inflation and CPI. Then, I was able to start and calculate myself some basic and simple indexes, but mostly, I was asked to compare them with the past permofmances. This is not a very difficult task to do, as I have had many statistical classes during my study years both in Macedonia and Belgium. But I have to say that, my internship was far from what I was expecting. I am conscious that the period I was able to do the internship, was a full working period. Everybody there was working at high speed to finalize the annual report of 2007, which is the most important, and also most voluminous of all. So, they had not very much time to spend with me and my internship. In general, this internship enabled me to see what the sector works in real terms, and also, it was very important for me that I was able to have access to the Banks library, and also to many publications that I saved, which helped me analyze the data that interested me more after I was done with the internship. III. Technical Part Introduction As I mentioned in the introduction of this internship report, I was first keen on studying the macroeconomic indexes that the National Bank of Macedonia uses in order to develop its reports (annually, monthly, even 2 weekly reports) that are required by many organizations such as World Bank, the ECB, the International Energy Agency, etc. But after some time, I realized I should be focusing more on one specific matter, and that was the energetic sector of Macedonia. I think the problem of energy, globally speaking, is becoming more and more an important issue, that is undoubtedly an unavoidable factor for the economic growth and development of one country. Especially, in countries such as Macedonia, who arent very rich in natural resources, this situation can have a huge impact, having in mind that these countries are highly dependent on the import of energy producing products. The reason why I chose this topic to study is, that it is a problem everybody talks about in these days, as we are conscious of the high prices of oil in the recent months. This is another important factor that pushes the issue of the Macedonian energetic sector just further. This study provides an overview of the investment and policy choices in the Macedonian energy sector. On the investment side, the study highlights the criteria under which potential investments in a new Combined Heat and Power (CHP) plant and a new coal mine should proceed. The Report focuses on reforms that would be required to support the CHP project, namely ratification by Macedonia of the Kyoto Protocol and resolution of ownership issues related to the gas pipeline linking

Migration Stories Essay Family Story Essay

This paper will take a key interest in the migration story of my parents Barbara Heinemann and Kirby Clark and their story in relation to identify the factors that shaped the migration and resettlement of migrants in the 1980’s and the Australian government’s policies and desires. How the processes of alienation and assimilation affected migrants who came from a western culture and how acceptance and ‘mateship’ was difficult to find in Australians. I will do this while comparing the similarities that other migrants in Australia and around the globe faced and different migration trends in the 1980’s. The paper will also discuss migration and what set voluntary migrants apart from other people and particularly the predisposition for migrant children to become migrants themselves. During the early 1980’s like much of the world Canada was experiencing a recession. Many people were in fear of losing their jobs in the current environment. â€Å"I was very nervous about cut backs at PWC (PricewaterhouseCoopers). From what I knew at the time, Australia wasn’t affected nearly as much as Canada was so I decided I’d try my luck in Australia on a 2 year working/holiday. † (). Many such companies were being encouraged by the Australian government to bring immigrants with â€Å"particular Professional skills, business experience† (). Many of the people that decided to take up the opportunity provided by organisations like PricewaterhouseCoopers never intended on staying in Australia. â€Å" When I first arrived I thought I’d always be going home, like most of the people I worked with were expats they all thought they were going to go home after their visa was up†(). By the mid 1980’s Canada had pulled out of the wor st of the recession. â€Å" By the time I left Canada the recessions was pretty much over. I was in a rut, I wanted something new and a 2 year working/holiday in Australia was my way out, but when I arrived I saw that the recession wasn’t over in Australia† (). Australia’s ‘clever country’ policies made it easy for skilled migrants to obtain permanent residence. â€Å"Almost all of the people we worked with at PwC, who where expats decided to stay, we were practically handed permanent residency† ().In the 1980’s the government’s desire to develop the financial sectors and technological sectors saw an increase in demand for workers and an increase in income to those who worked in them. â€Å"migration policies refocused on highly skilled workers, whether  permanent or temporary† (). Skilled workers were in high demand all over the world and Australia being so isolated could only have decreased the desire for people to move there but the Austr alian government may have had one of the best immigrant ‘recruitment’ policies due to the huge percentage of skilled workers that it took in comparison to some other countries. Australia became home to any new migrant families in the late 1980’s and early 1990’s, many of the temporary workers applied and received permanent residency. â€Å"Almost all of the expats at PwC stayed in Australia, and most of them married each other or an Australian.† (). Australia has become one of the world’s most diverse countries if not number one or two. 24 percent of Australia’s population was born overseas and another 26 percent have one or bother parents born overseas. This number will only increase with children from the migrants that arrived in the 1980’s and 1990’s becoming old enough to be part of the statistics. At most schools it seems to be a higher percentage than 26 that have parents from overseas and around the same as 24 that were born overseas. In the 1980’s migrants decided to stay in Australia and to make it their home as no one was from the same place their lives together were in Australia â€Å" Me being Canadian and my wife being English we didn’t have a shared home other than Australia. We both love it here why would we think of moving to either of the others?† (nkob). â€Å" I’m from Toronto in Canada and Barbara is from Vancouver, we didn’t have a shared history in Canada, we came to Australia at different times but we’d made ourselves a home here, we’d gotten married in 1988, bought a house in 1989 and had a son in 1991† (). After about 5-10 years many migrants who arrived in the 1980’s realised that they probably wouldn’t be going back home to live. For many it would have been an hard concept to deal with. â€Å"I know that after about 3 years I thought I probably wouldn’t be going back to Canada but it didn’t really hit me till I was here for the 7th year† (). â€Å"I always thought I’d be going home until my son was about 5, I decided that this is our home now. I’ll probably go home more when my parents get older and are unable to take care of themselves† (). Many of the skilled temporary workers thought they’d be going back to their homeland but most didn’t, about 75 percent of the staff at PricewaterhouseCoopers that came from overseas went home after their 2 years. â€Å"I only remember about four people going back to  their home countries.† () All migrants face some Alienation when they arrive in a new country. Even people who come from ‘western’ countries feel some sort of alienation. It may not have been culturally that they had problems. Socially the migrants that were seen as temporary were not accepted their Australian co-workers didn’t see the point of getting to know them if they were here temporarily. â€Å"The expats stayed together most of the time. The Australians weren’t rude but they just didn’t care it took years to get to know an Australian from work, I was only temporary in their eyes. The Australians were also into buying a house and setting up their families. Most of the expats were here to party, it was called a working/holiday for a reason, we’d go out together most nights of the week† (). The new migrants didn’t know where to go or what to do in Australia. â€Å"I’m sure I would of figured life out by myself but all newcomers were taken und er an others wing shown where to go and which places were the cheapest and the best† (). Some of the migrants are still feel alienated today. They’re not from a different ethnic background from many Australians. The difference is there isn’t a Canadian or an Irish or an English community. â€Å"In some ways it may have been easier to come here from a country where many of people have come earlier. I have been living in Australia for 23 years and I still get asked how long I’m visiting for, or where in the states I’m from† (). They may not be discriminated against but as soon as they open their mouths many of the migrants get labelled as temporary. Assimilation was also something that these migrants had to overcome, most Australians at the time that were the same age as most skilled migrants were starting to settle down, buy houses and starting families. â€Å"we didn’t really have much contact with Australians our age they were either younger or older at either ends of their professional carriers.† (). Many kept part of the culture from their homeland with them or their previous routine. â€Å"In Canada I played Ice hockey at a high level and for the first 6 or 7 years I was in Australia I continued to play, becoming all Australian a few times. I remember Paul played rugby at a high level in Ireland and continued that here as well.† Being considered Australian is a hard thing for a lot of migrants to deal with psychologically â€Å"I don’t have a home country, I’m more of a global citizen, I’m a Canadian citizen, a  permanent resident in Australia but I wouldn’t call either my home. I’m a Canadian in Australia and an Australian in Canada.† ()Assimilation in Australia is hard to define with there being so much diversity it maybe not be a big issue with people having to assimilate with Australian culture if they already come from a ‘western’ cultured country. During the 1980’s migrants were migrating in the search for jobs and to escape from prosecution. Canada, America and Australia had a huge influx of Asian people predominantly from Hong Kong and Taiwan ,â€Å"about 50 percent of peopled the immigrated to Australia in the 1980’s were from Asia†(). In the 1980’s and 1990’s a large number of immigrants that arrived in Australia came from Asian, Middle Eastern countries and India. â€Å"When I first arrived I didn’t see that many migrants that were from Asia, particularly Indian people in comparison to the number in Canada but over the next 6 or so years I saw a huge increase of Asian, Indian and Middle Eastern people around the city† (). Australia was being ‘Asianised’ not as in a invasion but that instead of most migrants being from Europe many more where coming from Asia and the government was being more accepting to non Anglophone people. â€Å"When I first arrived Australia wasn’t a multicultural country in comparison to what id experienced in Canada, but as time went on it became very diverse very quickly. It became the Australia they had been promoting.† In the financial sector most of the immigrants were from Europe or North America but in the Information technology sectors the Asian and Indian people were the majority. â€Å"Most of the people that came to PwC where I was working were from the UK/Ireland, Germany or North America but in the Tech department I don’t think there was a person that wasn’t Chinese or Indian† (). The reason why countries were looking for skilled migrants, migrants with capital and entrepreneurial migrants was that these migrants usually such migrants would find a niche for themselves, perhaps as initiators of the new industries (). Migrants are people willing to change their lives in an instant. Someone who’s willing to leave their homeland and go out into the world, move half way around the world and try their hand at something is someone to be admired. Migrant families also tend to not stay in one spot for long or usually someone in the family makes a similar decision as one of their forefathers to try something else. â€Å"migrants are different from everyone else I think, they’re willing to take a chance, to risk everything, they are looking for an adventure. Although my grandparents moved to Canada from England, I never knew them but from a young age I had a desire to see the world, may have been from the stories from Bob our next door neighbour, none of my brothers or sisters moved away from home.† () Is being a migrant hereditary? It seems that people whose parents have migrated or family members have migrated before are predisposed to do so themselves. â€Å" Do I think it’s genetically inherited no I think it’s a frame of mind and previous experiences. My parents moved from Germany to Canada after World War II, the fact that they were migrants didn’t persuade me to go in anyway but the face that I’d travelled a lot when I was younger did have an effect on me I always entertained the thought that I might not be a Canadian forever.† () It may also be the fact that people that are 1st generation citizens of their country don’t actually identify themselves with that country. â€Å"I was born in Canada but because both my parents are German, I considered myself more German then Canadian which makes it much more confusing for me now living in Australia whether I am Australian, Canadian or German.† () â€Å"Both my parents are Canadian when I talk about home I talk about Canada despite the fact that I never lived there and I was born in Australia, at school I was always considered Canadian. I don’t think I’ll be in Australia much longer, there’s so much more out there to experience!†() This essay has explored what factors shaped the migration and resettlement of my family and skilled migrants in the 1980’s. It also discussed the processes of alienation and assimilation that skilled migrants faced in the 1980’s placing particular emphasis on temporary workers. Whilst comparing both of these with other migrants in Australia and worldwide and other migration trends. Finally I will explore how migrants differ and what influences people to migrate and the effect it has on the next generation and their beliefs and the disposition they have into becoming migrants themselves. Reference List http://science.jrank.org/pages/10225/Migration-in-World-History-Global-versus- Nationalist-Perspectives.html

Culture and Ikea

International Management Bermet Kanybekova 20113658 Assignment 5: IKEA 1. What has allowed IKEA to be successful with a relatively standardized product and product line in a business with strong cultural influence? Did adaptations to this strategy in the North American market constitute a defeat to their approach? IKEA has become the world's largest home furnishing retail chain with its international expansion in three major phases. Its mission is to offer a wide variety, good design and value for â€Å"young people of all ages†.IKEA is determined to maintain a standardized product strategy with a universally accepted assortment around the world, now carrying a variety of different home furnishings. It has limited number of manufacturing, however, designs all of its furniture. IKEA's cost leadership strategy through high volume production and standardized items enabled it to sustain its business. Consumers are expected to become â€Å"prosumers†, in the meaning of half producers and half consumers, thus supplying their time for assembling work after their purchases.Consequently, IKEA's success is due to its customer focused strategy. The principal market target is composed of â€Å"people, who are young, highly educated, liberal in their cultural values, white-collar workers, and not especially concerned with status symbol†. Therefore, consumers with low status concern and low conservatism enabled IKEA's success in strong cultural influences. Moreover, high income groups have fewer cross-cultural differences and more open to adapt values to new beliefs.As a result, with their right consumer target, IKEA was able to succeed with their relatively standardized product line. North American market proved that standardization is not a key to success in an American market; therefore adaptions have been made that clearly changed IKEA’s strategy. IKEA with its standardized market changed to a global market strategy and implemented new ideas t hat fit American taste in their market. Adjustments were made to their furniture that created and targeted more American consumers.Moreover, some adaptions might have been transferable to other targeted markets around the world. Consequently, the North American experience has caused IKEA to blend in their ideas and start remixing its formula elsewhere. For instance, these changes were implemented to the European market, changing furnishing concepts such as making sofa beds in Europe. 2. Which features of the â€Å"young people of all ages† are universal and can be exploited by a global/regional strategy? The â€Å"young people of all ages† share similar features internationally that enabled IKEA to maintain its target universally.However, not all of the targeted features were shared among various cultures. Hence, there were some adaptations according to various cultures and the relative importance of these features varied between countries and their consumers. Nonethel ess, the majority of the targeted consumers liked to perceive themselves as practical, modern and non-traditional. In other words, these consumers didn’t stick to the traditional way of furniture, instead saw IKEA’s designs as good, modern and practical that allowed them to afford their products.In this sense, simplicity and practicality was more important than traditional styles of furniture. With this concept, IKEA was able to specifically target those consumers who vied their products as fitting their taste with different features. Therefore, this concept with being practical and simple instead of traditional is an example of universal feature that can be further developed. IKEA’s targeted market like shopping for good value; therefore, they are ready to contribute their time and energy to get satisfaction out of assembling their work.Consequently, this willingness to contribute more and achieve better value is another feature that is shared among IKEAâ€℠¢s universal target. These new changes in IKEA’s strategic plan have brought it to a new level of international business with better customer satisfaction and greater value. 3. Is IKEA destined to succeed everywhere it cares to establish itself? Is IKEA destined to succeed depends on how flexible its concept is in various countries. However, I believe that IKEA will not succeed everywhere it establishes itself.The concept of IKEA can slightly be changed and adapted according to various cultures, but I strongly believe that certain changes cannot be implemented fully. This changing concept will have limitations when it is further taken globally and need to meet the standards universally according to various economies of countries. For instance, value of a certain sofa in a certain country is totally different in another country. If we take a sofa in America for $300, the same product must be sold at a lower price in a developing country due to its value differences in their ec onomy.Therefore, not all of IKEA’s concepts can be fully changed if they want to maintain its original formula. Moreover, customer expectations are different in various countries, thus, IKEA would have to consider new changes and flexibility in their concept to meet customer expectations and their value for products offered. In conclusion, I would like to point out that there is always a limit in adapting and changing concepts to meet various customer values and their desires to create profitable sustainability.

Medical Marijuana Should Be Legal Essay - 1028 Words

Should the use of marijuana for medicinal purposes be legalized? Wouldn’t it be simple to provide a simple black or white answer to this question? Across the nation there is much debate on this very topic, one that I don’t believe can be solved so easily with a yes or no. There are so many activists that have strong opinions on this subject and go to the fullest extent to ensure they are heard. As simple straight forward as this question is it was hard for me to determine which side of the line I stood on. After reading all of the articles and much research on the issue I find myself leaning toward allowing medicinal marijuana use. By allowing medicinal marijuana use there are going to have to be many precautions taken to ensure that†¦show more content†¦There have been many research efforts within the United States alone to help relieve the disbelievers of the drugs ability to help patients who really need it. Although Marijuana has not yet been proven to cure glaucoma, it has been proven the drug does relieve the pressure set forth from glaucoma. Along with that there are many research efforts to show how Marijuana is a helping factor for relieving some of the symptoms associated from the AIDS virus in patients by helping the patients eat and retain food. Along the same lines with patients who are anorexic, the use of marijuana creates an appetite in those patients and allows them to eat and retain more food.2 Finally several studies have shown that the medicinal value of marijuana is one of the safest therapeutic substances known. There is no evidence of death associated with an overdoes of marijuana. Many doctors find value in the prescription of marijuana for the treatment of nausea and to increase appetite in a variety of patients, reduction of intraocular pressure of the eye, reduction of muscle spasms, and the relief from chronic pain. Patients with chronic diseases the use of marijuana has been beneficial when dealing with symptoms, helping the patients overcome some of the pain. For AIDS patients marijuana reduces the nausea, vomiting and loss of appetite caused by the virusShow MoreRelatedMedical Marijuana Should Be Legal904 Words   |  4 PagesMedical Marijuana Although marijuana is illegal and lacks FDA approval it should be used to treat cancer. Opponents of medical marijuana argue that it is too dangerous to use, lacks FDA approval, and that various legal drugs make marijuana use unnecessary. They believe marijuana is addictive, leads to harder drug use, and injures the lungs, immune system, and brain. They also believe that medical marijuana is a front for drug legalization and recreational use. Benefit that it is isn’t a great treatmentRead MoreShould Medical Marijuana Be Legal?1249 Words   |  5 PagesMarch 1, 2017 Medical Marijuana Informative Unless you ve been living under a rock, you have probably at some point in the last few years had a conversation with a friend or family member regarding medical marijuana. Although it is considered a controversial topic, in recent months it has been gaining approval by the public. But it does not come without opposition and arguments. Medical marijuana is a complex subject and still requires more education for the public, the medical community, and theRead MoreMedical Marijuana Should Be Legal1477 Words   |  6 Pagesacross the nation believe that medical marijuana can provide a variety of benefits ranging from pain relief to increasing appetite. Others won’t provide the drug to patients until more significant evidence is presented. The drug has been a topic of debate for many years, but one thing that researchers can always count on is a growing library of testimonials from patients who have legally experimented with the drug to manage their conditions. As it stands, mari juana has had a different impact in eachRead MoreMedical Marijuana Should Be Legal1651 Words   |  7 Pagesmost commonly referred to as marijuana. Medical marijuana refers to the use of cannabis and its cannabinoids to treat disease or improve symptoms (Wikipedia.com). Cannabis contains two active ingredients inside called cannabinoids (CBD) along with the delta-g-tetrahydrocannabinol (THC). The medicinal and psychoactive effects that personally associate with marijuana are caused by unique structures of cannabinoids. In addition, the major psychoactive ingredient in marijuana is THC, which additionallyRead MoreShould Medical Marijuana Be Legal?1778 Words   |  8 Pagesusing medical marijuana for chronic pain outweigh the risks? Medical Marijuana is a topic we have all heard a couple of times in the past years. It has been a debatable topic since there seems to be a lot of opinions on what should be and shouldn’t be legal. Some say its benefits outweigh anything else, and some others state that there is a hazard involved with this drug. There are studies on both sides of the question that demonstrate what appear to be clear benefits for medical marijuana, asRead MoreMedical Marijuana Should Be Legal1545 Words   |  7 Pagesmedicinal utility of marijuana. However, the federal government opposes passing legislation that would legalize medical marijuana because of its potential to be abused or unregulated. The states are continuously challenging the federal government causing complications in legislation in regards to medical marijuana. Because of its history of medicinal properties and accumulating amounts of state and local legislation, the federal government should decriminalize medical marijuana an d legalize its useRead MoreMedical Marijuana Should Be Legal1053 Words   |  5 PagesMedical marijuana, also called cannabis, is used in some places as a medication to treat diseases and symptoms. Many people consider it helpful and harmless making it the most used illicit drug in North America. With legalizing medical marijuana people can alleviate some health problems and help ease physical pain, but it also can bring many concerns, questions, and responsibility. Legalizing cannabis can help many people with their health conditions. There are some advantages to taking medicalRead MoreShould Medical Marijuana Be Legal?1591 Words   |  7 Pagesdebated topic on marijuana legalization is widely argued. Whether it’s for medical or recreational usages, this topic is reaching boiling point. The complicity on the legalities of marijuana has reached a point in society where legal usage has been popping up across the country. In the medical sector, studies have shown benefits, and harmful effects in patients. Some physicians support, however some physicians do see health concerns that influence their stance on whether medical marijuana laws are toRead MoreMedical Marijuana Should Be Legal897 Words   |  4 PagesMedical Cannabis Weed Cannabis, also known as Marijuana has many effects to it. In recent years officials have decided that it should be used for medical usage. They have found out that it helps many medical conditions. Medical cannabis has many things that could cure. Studies has shown that it slows the response time in the synapses in the brain it helps the brain heal. For example if someone was in a bad wreck it allows the brain to eventually heal. Because it is unlike other prescribed drugs weedRead MoreMedical Marijuana Should Be Legal860 Words   |  4 Pagesthat medical marijuana might be useful in reducing this pressure. Marijuana has also became a common sight in the medicine cabinets of patients suffering from HIV/AIDS and many different forms of cancer. Cannabis consumptions has been known for its ability to stimulate appetite commonly referred to as â€Å"getting the munchies.† Medical marijuana can successfully benefit its patients with HIV or cancer by helping generate an appetite through the use of plant. Researchers have shown that medical cannabis