Socio-cultural Influences on Consumption Japan Speech or Presentation

Socio-cultural Influences on Consumption Japan - Speech or Presentation Example Shintoism and Buddhism are the major religions in Japan. Some people practice both, as the religions complement each other in many ways. Coming to the language, Japanese is official and widely used, even in case of business communication. Interpreters do the translation in case of language-handicap experienced with overseas business clientele. They expect their language to be valued, even while using it for business, promotional or packaging purposes. People are respected by age and the ancestors are worshipped in Japan. Extended families consisting of uncles, aunts and grandparents were of common occurrence until recent years, when the hike in real estate prices made nuclear families more feasible. However, all the relatives meet up during festivals. Thus, the consumption pattern of the consumers have changed based on the variations in the family structure. Food is an essential part of Japanese culture. The head or the eldest or the most important person is allowed to start the meal first. Soup is an accompaniment, rather than being a starter and slurping noodles even in formal meetings is usual. Japanese remain communicate less while eating, because mealtime is meant for enjoying food. Their food philosophy is of total well-being, termed as Shokuiku. Brief cereal breakfasts, packed or bought lunches and detailed dinners with family are common (International Markets Bureau, 2010). Japanese consumers hold certain taboos, which need consideration in understanding their behavior. Saying ‘no’ is not of common practice in Japan. Pointing anything with chopsticks; usage of number ‘4’; white shirt, black trousers and black suit; exchanging food with chopsticks, etc., remind them of death and funeral and thus, these gestures must be avoided (kwintessential, 2004). Harmony and cooperation are the values that are promot ed in Japan. Education, home and business settings revolve around working with others, being polite even in case of disagreement and learning to live in collaboration. Thus, the societal norms in Japan are community oriented. Diligence and empathy are part and parcel of their behavior, which places the thoughts and feelings of others, before one’s own (Kogler, 2006). People assist others who need their help, by putting aside their own job at hand and they feel embarrassed when they are not in a condition to do the needful. This again reflects the emphasis on consumer service orientation and apt response to command and authority of the employees in the nation (kwintessential, 2004). The code of conduct for businesses in Japan essentially emphasizes courtesy, compassion and consideration. Maintaining a business card in Japanese, exchanging it on important occasions and treasuring those extended by the others form a part of this protocol of reverence. While attending a business gathering, everyone is expected to look well-groomed, formal and be punctual (kwintessential, 2004). Establishing long-term business relations is preferred to immediate

Airport Planning and Development Essay Example | Topics and Well Written Essays - 1000 words

Airport Planning and Development - Essay Example Factors such as job creation and increasing revenue to the government inform the decision to expand Heathrow airport (Holland-Kaye, 2014). The expansion of Gatwick airport, for instance, would raise 90 billion pounds of economic benefit at an afforded environmental cost because; it has never breached UK air quality guidelines since it is located in the rural, which is sparsely populated. However, the number of people affected by noise at Heathrow airport is high because it is located in a city that is densely populated and, therefore, hindering its expansion. London Heathrow airport has programs to enhance development that has small or no impact on the environment. Several factors influence the balance between the environment and the expansion of the airport in terms of its facilities and the revenue base. The pros of this issue entail factors that favor the development of an airport. For instance, to maintain the growth of tourism industry, there is need to include an additional runway, which will accommodate the high influx of tourists both domestic and foreign. Expansion of airport capacity promotes the business of a given country. A country can competitively conduct its businesses locally and internationally since there is adequate space for exports and imports. Travel growth is predicted to rise globally. Airport capacity expansion aims at meeting the rising demand for aviation services. Lack of employment is another favorable factor facilitating the expansion of an airport in terms its facilities. Expansion of the airport would create more jobs for pilots, airhostess among others. Both the public and the airport company will benefit, for instance, the public will get salary through employment while the airport company gain increased revenues through earnings. Heathrow employs over 110, 000 people including hotels

Proposal Letter to a Researcher Assignment Example | Topics and Well Written Essays - 250 words

Proposal Letter to a Researcher - Assignment Example As a result, I have kept an account of some of the weirdest sexual behaviors I have observed by various groups of women over time. Including me in your research team will be a great thing because I am a good team player, clear writer who pays much attention to detail, knowledgeable with basic computer programs like Word, Excel and other programs that can be used in research. My interest and additional knowledge on womens behavior can act as additional points in discovering the forces that drive women behave in the ways they do. I will always be indebted to you if you grant me the opportunity to work under you at the UCSB and in your research team. My passion on your topic of research will be of valuable asset to your team if I am offered the great opportunity. I would be very happy to communicate further with you on the available opportunities to work with you. I have attached my

Article Analysis Essay Example | Topics and Well Written Essays - 500 words - 5

Article Analysis - Essay Example rategic choice because it launches innovative health care products, and that the strategy is implemented through building synergies with existing systems and providing space for adapting new ones. In addition, the basic meaning of the article is that Apple is ready to lead in the production of innovative health care products that both prevent and manage diseases. The article, moreover, will help me succeed in class and my employment because it inspires me to also find new innovations where I can use my strengths as distinct advantages. First, the article has the elements of strategic analysis, strategic choice, and strategic implementation (Kew and Stredwick 205). Apple has a vision of being a leader of innovative products that can change industries for the better (Hull). The Apple Watch represents Apple’s vision as it enters an industry that it is new to it too. This is similar to Nintendo’s Wii that became a health care product when it promoted physical activity that has entertainment and social value. Apple Watch is an innovation that can help Apple become a more familiar brand in the health care sector. Moreover, Apple shows that its strategic choice is about innovation. It is not afraid of promoting change, as its watch combines prevention and disease management (Tozzi). Furthermore, the strategic implementation of Apple is to start with a product that is already based on linking existing systems. For instance, Tozzi says: â€Å"HealthKit will plug into electronic health records from Epic and o ther providers, enabling smoother communication between doctors and patients.† Apple Watch shows that the strategic choice is about improving how systems can work together, and how it can offer something new now and in the future. Apart from these elements of strategic management, the article has the basic meaning that Apple is ready to lead in the production of innovative health care products that both prevent and manage diseases. Apple Watch can help people

Two Handed Bowling and Sandbagging Essay Example for Free

Two Handed Bowling and Sandbagging Essay Sandbagging is a term used in many sports to define someone that is intentionally playing the sport bad in order to better themselves with handicap. There are people that completely agree with this and use the handicap as an advantage. On the other hand, you have the people that are for all intentional purposes trying to do their best every week and try to keep their average high. There are two sides to every story and finding out the cheating side is always the hardest. Bowling two handed has become a controversy because people technically aren’t switching hands, which is against the rules, instead they are switching styles and this usually causes them to have a lower average. Some people think that a new rule should be added to completely do away with the two handed style all together and others think that if people want to sandbag, then let them sandbag. Two handed bowling has been a controversy since Jason Belmonte started bowling at the age of just two years old. Before that, though, two handed had never been seen and everyone bowled with just one hand. It hasn’t been a problem against the rules, it has been a problem called ‘sandbagging.’ Sandbagging happens in leagues and gives that person an advantage. For example, if a one handed bowler with a 200 average starts out bowling two handed with a 160 average, he can get a higher handicap and finish out bowling one handed. The higher handicap will give his team more points. This goes into the idea of it being ethical. It’s technically cheating and if you are aware you are doing this to win, it isn’t right. If a bowler cheats and sandbags, should they have to finish out the season bowling the way they started? This isn’t just to win their league, it’s to also help them win tournaments that have handicap. â€Å"They seem to flock to handicap leagues and on occasion have a career year in a high money scratch league with team maximums.† (Rodriguez). Bowlers look down on the people that do this because it isn’t fair to the ones that keep their averages high and take the sport seriously. The argument with two handed bowling isn’t that it is against the rules, it’s that people abuse it. They sandbag with two hands, then bowl one handed in tournaments to win. People want a rule made to go along with the rule that says if a person starts out left/right handed, they must finish out the season left/right handed, to say that if a person starts out bowling one/two handed, they should finish one/two handed. â€Å"The emergence and growing popularity of what is known as the two-handed delivery in bowling has caused the United States Bowling Congress (USBC) to consider its impact on the rules and application of the sports specifications.† (Henry). This quote is explaining that USBC is looking into the rules and could possibly add a rule that is against switching between two styles. However, there are some exceptions and some people that think sandbagging is an ‘ok’ thing to do. Not only is this an argument against the rules, most people strongly disagree with the idea of sandbagging because it gives people an advantage in handicap tournaments. â€Å"†¦if I have the ability to be a consistent 200-average bowler, but I spend all season deliberately averaging 170 or so, my handicap will be that of a bowler much worse than me. So, when the important games start, I go back to bowling as I know I can, and I have an additional 20-30 pins of handicap as a cushion.† (Goodger). This is explaining how the handicap works and why people sandbag. Handicap tournaments are for people with averages usually under 220. The reason they have the rule that you can’t switch hands is because people will bowl with their ‘bad’ hand to set a low average, then in tournaments, they bowl with their right hand and dominate the competition. It’s the same thing by switching styles. People bowl two handed, which can be by their same hand, but actually bowl one handed. The only thing that people think should be allowed is picking up spares one handed. A two handed bowler, Osku Palermaa, bowls his first ball two handed but picks up spares one handed. Almost everyone that are against the switching of styles think this should be allowed. This is where stats come into play. If someone can average a 210 one handed and a 170 two handed, they should only bowl one handed on the first ball. On the same page, if a bowler averages 210 two handed, and just 180 one handed, then they should only bowl with two hands on the first ball. The switching of the two styles could be the equivalent of switching hands in golf. Maybe a shot is easier for someone left handed and they can make the shot, even though they golf right handed. That option is not allowed in bowling, and with the many styles that are offered today, there has to be some rule to balance the field. Tournaments in the youth and some adult tournaments are used with handicap. So handicap with bowling would be a good thing. You average 200 and shoot a 210 with a handicap of 100% of 220, and you technically shoot a 230. This is the same in golf, if a golfer has a high handicap, then that means his ‘average’ is higher than some other golfers with a low handicap. It’s almost backwards in golf, but works the same way to ensure that players can play each other and be equal, regardless of skill level. I think of true athletes like Tiger Woods, Michael Jordan and Derek Jeter. â€Å"Can you imagine for one second any of them missing the winning putt, not making the game winning shot or striking out INTENTIONALLY? I didn’t think so.† (Doe) This quote is saying that a bowler averaging 170 is not going to make that game winning strike, and it’s very obvious when someone is sandbagging. In every sport there is always someone trying to bend the rules and take advantage of things such as handicap in order to win tournaments. In golf, someone can shoot horribly and have a high handicap, and then shoot great in a tournament and nobody can beat him at all. This is taking advantage of an idea that is supposed to even out the players based on their personal ability. So if you do better than your average with a 170, and someone else does a little worse than theirs but bowls a 210, then you should win, regardless of the scores. That is how handicap works in bowling, as well as golf. This is a moral thing and I don’t see how someone can win in terms of cheating. You can’t cheat in football or any other sport, so why be able to in bowling? The basic counter argument of this idea is that sandbagging and switching hands to do so is something that is ‘normal.’ Some people think that taking advantage of this idea is why it was put in place and they can abuse it if they want to. If they want to sandbag then there is no rule that is preventing them from it. From their point of view, it’s only cheating if you get caught, and most people report them to their league supervisor or coach. Some even sandbag in the first couple of weeks and then bring their average up gradually in order to stay hidden and ‘under the radar.’ Besides, it isn’t like everyone else can’t throw a few bad balls their first few games of a league. An article about why sandbagging is allowed in bowling alleys explains it. â€Å"The only real handicap we are dealing with in bowling is money. If the bowling alleys have to throw a blind eye to what is going on they will, this is the only way to keep them in business.† (â€Å"Bowling tips for beginners†)Money and keeping their league members is exactly why they don’t report the sandbaggers. They are almost always the ones that know how to bowl bad and make it look like an accident. Another thing they look at is that if people don’t like sandbagging, then they can go join a scratch league, in which there is no handicap so you have to bowl well. You may be able to bend the rules and some people may not care if they cheat, but sandbagging is wrong in all levels of sports. Even in a youth league where you have ages ranging from just 7 years old all the way to 19 or 20 years old. But even in these youth leagues you have the bratty teenager that knows his or her way around the rules. When bowling in these types of leagues, there is handicap, and hundreds of dollars worth of scholarship money is on the line. What a better way to make sure you get the top amount than cheat your way to the top. What a better way to win tournaments than to cheat. While that is going on you have the kids that try hard every single week to keep their average up and usually do a great job at it. So when those kids get in tournaments sometimes they do better than their average and they deserve that trophy or money. But three lanes down you have a guy that really averages 210, bowling with a 180 average and that isn’t fair to the ones that try and work hard to have the average they want. To show some statistics and numbers, I found an article that shows just how hard it would be for someone in golf to shoot two over par with about a fifteen handicap. This would be the equivalent of a bowler averaging 175 and bowling a 680 series (three games put together). â€Å"The guy, a member of the host club, claimed a midteens handicap, but in his practice round shot a couple of strokes over par. The odds against a true midteens handicapper shooting such a score are greater than 37,000 to 1.† (Golf Journal). All this is saying is that if you are going to sandbag to win, don’t make it so obvious. To prove that sandbagging is wrong and to show how handicap does work, I have put together a situation. In a tournament that was last week, two guys, we will call them Bill and John, were bowling against each other and both were doing extremely well. The handicap for this tournament is 100% of 220 pins, which means whatever their average is, for example a 200, their handicap would be 20. These two guys are bowling and they are bowling very well scratch (without handicap), but with handicap one of them was losing tremendously. John has been bowling since he was five and has never changed his style, except this year he decided to throw two handed at the beginning of the season and averaged just 180. His average went way down so he later decided to go back to his normal style in which he averages 210. So he goes into this tournament with a 190 average and actually has a 210 average. But Bill, a newbie that hasn’t even been bowling two years yet, has tried to keep his average at a 200 all year long and has succeeded. This was the championship game and Bill had worked his way up the ladder to bowl John who qualified first. Starting off, John already has a 10 pin advantage over Bill because his average is just 190, which gives him a 30 pin handicap compared to Bill’s 20. But remember, John’s real handicap is only 10 because he sandbagged earlier in the year to make his average lower. The two start bowling and John shoots a 268, But Bill only misses once and gets a bad break, but finishes out for a 275. Now, technically, Bill is the real winner here and he bowled a great game to finish with a 275. But with handicap, Bill’s score is a 295 and John’s is a 298. So John won because of the handicap. How is this fair? If John had actually worked hard to average 190 and managed to bowl a 268, I believe that he should win hands down. But, he didn’t, he cheated and he shouldn’t have won. I have personally bowled in many tournaments and leagues and I witness adults sandbagging on a monthly basis. I see bowlers that can throw a great ball, and throw it straight at the pins like a beginner. I find this extremely unfair and I do see it as cheating. â€Å"All good is hard. All evil is easy. Dying, losing, cheating and mediocrity is easy. Stay away from easy.† – Scott Alexander. (Brain Quotes). The quote explains itself. Cheating is the easy way to do things and you don’t get any satisfaction from beating someone by cheating. It’s like using steroids in baseball, or taking off a restrictor plate in racing, you will get caught and it’s not as fun. Why would someone ‘try out’ two handed bowling for a few weeks and then go back to their normal style? If they start out two handed then they finish that way and the same goes for a one handed bowler. Personally, my average two handed is 215, but one handed I couldn’t probably even average a 170. The facts are there and it isn’t fair that people sandbag in order to win. It’s wrong and hopefully one day the USBC bylaws will enforce this controversy.

“A Visit of Charity” by Eudora Welty Essay Example for Free

â€Å"A Visit of Charity† by Eudora Welty Essay Is Eudora Welty successful in showing how human beings can be more interested in their own personal gains than the needs of others? Marian didn’t really want to visit the home for the elderly but she is a Campfire Girl and by taking out the time to go, she will gain points for offering her time to charity work. A gift of flowers was something that Marian brought to the home in order to make her visit look more genuine, but the apple that she brought; she hid outside so that none would think it was also a gift. There was no special person that she wanted to visit, she only wanted to do the job that she came for, earn her point and leave. She wears her Campfire Girls cap to show who she is and she is very afraid to be around a bunch of older people that she has never met, before, but the added point means so much to her that she is willing to visit this strange home. She is more interested in what she can gain from this visit than what she can offer to others. Addie wasn’t thrilled by Marian’s visit. She was a cranky old lady who didn’t even like her roommate and couldn’t stand to hear her talk about a bunch of nothing, all the time. Marian had pretty, yellow hair which she wore a white cap over and she dressed in her red coat as she observed the two women in the nursing home. She had a job to perform and so much to do in her life as she watched the two ladies who had nothing but each other. (Welty, 1980) In â€Å"A Visit of Charity†, Eudora Welty uses Marian as a character who acts in ways that many of us do at certain times in our lives, in performing deeds that are solely for ourselves, and sometimes we forget about the feelings of others. Welty demonstrates in this story that we need to not only try to work toward our own goals but at the same time, we need to consider the thoughts and emotions of others who are less fortunate. Marian is the girl who Welty chose to show that people, especially young individuals, sometimes forget about more important things as we search for awards and points that make us look and feel better about ourselves. To truly feel better about ourselves, we must consider the feelings of others and then we gain the biggest reward of all; knowing that we made someone else’s day a little brighter and more fulfilling. Marian still had many lessons to learn, in life about human kindness, and as she takes a big bite out of the apple, she shows that she had been more interested in her own personal gain in this visit. The author made you think about others in her writing. Eudora Welty clearly showed the selfishness that one can see in Marian’s visit to the nursing home and how she had so much to learn about the true meaning of sharing and giving of yourself in helping others who are less fortunate. I believe that Eudora Welty clearly showed that human beings are sometimes very capable of seeking out their own personal gain in life and are highly capable of not considering the feelings of others, as we do. Reference Page Welty, Marian. (1980) â€Å"A Visit of Charity†. Library of America.

Yuan as a Dominant Currency

Yuan as a Dominant Currency This essay expresses my humble opinion on the idea of the displacement of the U.S. dollar by the Chinese currency, Yuan as the dominant currency in the global financial system, the possibilities of it occurring, reasons of why Yuan should displace the U.S dollar which include the benefits of internationalisation of Yuan to the Chinese onshore and offshore companies, foreign companies, global importers, investors, China, and of course to the rest of the world. Although it remains uncertain and questionable, I believe that China could displace the U.S. as the worlds strongest economy, and that the Yuan, Chinese currency may become the world’s global currency, or even replace the U.S. dollar as the dominant currency. It could even happen in our lifetimes. But, it will be a slow and long process that may result in a U.S. dollar decline, not a collapse. Also, I do believe that the Yuan should replace the U.S. dollar as the dominant currency in the global financial system, as the internationalisation of Yuan can bring numerous benefits not only to individuals, but corporations and governments worldwide as well. In the aftermath of the GFC (global financial crisis), the status of the U.S. dollar as the worlds reserve currency has gradually come into question. Heady money printing practices by the Fed of the United States has weakened the value of the U.S. dollar as many countries have considered in diversifying their assets into other currencies in order to diversify their currency risk, causing the reliability of the U.S. dollar to be questionable. The question then remains in which other currency is strong enough to substitute the U.S. dollar as the dominant currency in the global financial system. In spite of the crippling debt and undermine fundamentals in the United States, one of the main reasons why the U.S. dollar still continues to dominate is due to the fact that other countries have their own share of issues as well. And thus, the dollars strength is more relative. But recently, there have been â€Å"rumours† and talks that the Yuan/ Renminbi, the Chinese currency has the ability to supersede U.S. dollar as dominant currency in the global financial system and being the top reserve currency around the globe.   China is currently the world’s biggest manufacturer and exporter as well as its second largest economy according to ChinaDailyhttp://www.chinadaily.com.cn/china/2014-03/02/content_17315230.htm. Yet its currency, Yuan, which is still cautiously managed by the Chinese government, only has a small percentage of market shares which is substantially behind the U.S. dollar, and is hardly being traded on foreign exchange markets. However, the trading volumes are gradually increasing. During the last quarter of year 2013, the Yuan overtook the euro and became the second most used currency in the global trade finance after the U.S. dollar, based on the Society of Worldwide Inter-bank Financial Telecommunication. Since then, it became the 9th most traded international currency around the globe, according to a financial report created by the Bank of International Settlements. Some economists and analysts forecast that the Chinese currency will continue to rise in the next few decades. Al l the signs mentioned above indicate that the Yuan is gaining greater stature to be a more stable and suitable dominant currency. One of the great reasons why the Yuan should replace U.S. dollar as the dominant currency is the stability of Yuan. The steady economy growth of China for the past few years has almost proven its currency, Yuan a steady and safe currency to invest in. People may argue that the euro, yen, British pound could serve as a strong currency that can be the dominant currency as well; however, most of these economies have not been doing great since 2008. This is especially clear in Europe, where a sovereign debt crisis is brewing, and Japan, where a robust recovery from the last two decades has been put on hold by a combination of several incidents like nuclear power disasters, the spill over from the weak European economies and the 2007 U.S. financial crisis. The internationalisation of Yuan will occur before Yuan becomes the dominant currency. Therefore, the benefits of globalised Yuan can be solid arguments in why should Yuan replace the U.S dollar as dominant currency. There are many benefits when Yuan is internationalized. China has started to loosen its control for its financial markets recently and slowly opening up access to the onshore markets. In the year of 2007, the Chinese government started to issue RMB-denominated bonds, notes, and funds, which are named as â€Å"dim-sum bonds† in Hong Kong. Since year 2009, companies located in Mainland China have been able to perform cross-border trade in Yuan. This enables any onshore companies in China to reduce their transaction costs, speed up payments, and ensure for a better management of foreign exchange risks. â€Å"In the longer term, this will and can obtain wider benefits.† says Professor Yeh, associate professor of the Department of Finance at the Chinese University of Hong Kong. For instance, this will enable the companies to lower down the price of their products or services, and pass on the cost savings to the customers. On the other hand, the use of Yuan undoubtedly benefits foreign companies including the U.S. companies as well. Many U.S. companies such as McDonald’s, have taken advantage to issue RMB-denominated bonds in China and Hong Kong to save companies a fortune in terms of interest and transaction costs. Moreover, issuing RMB-denominated bonds is a great way to hedge currency risks as well. Given the slow economy growth in the western countries, holding a RMB-bond can diversify the currency risk imposed by the U.S dollar and euro. RMB- denominated bonds are a good financial instrument for companies to conduct business in China in protecting them from any fluctuations in currency values in the future. More advantage in using Yuan in conducting business with the Chinese is the discounts that Chinese business leaders may provide if a business transaction is deal in Yuan. According to the HSBC’s research, 56 per cent of Chinese business leaders would offer discounts to their trading partners for transactions performed in Yuan for up to three to five per cent. U.S. multinationals with business operations in China can also benefit when they perform transactions in Yuan, as it enables them to centralize their management of foreign exchange. Instead of managing their foreign exchange exposure in China, they could centrally manage it in a regional or global centre in New York, Singapore or even Hong Kong, for instance. Next, China is a top import and export market for many countries around the world including the U.S., according to ChinaDaily USA http://usa.chinadaily.com.cn/epaper/2014-05/08/content_17493372.htm. It was also the biggest recipient of foreign direct investment in the first six months of year 2012, based on HSBC research. According to http://www.cfr.org/china/uneasy-us-chinese-trade-relationship/p10482, the trade between China and the U.S. is healthy. As a matter of fact, 77 per cent of U.S. business leaders claimed that they do import from China and 49 per cent claimed that they have export partners in China, according to a survey performed by HSBC. Since the U.S. has the largest percentage of international trading activities with China, the U.S. could benefit from the use of Yuan in conducting their trading business with China. For the benefits of importers, performing trade activities with the Chinese trading partners in Yuan relates to pricing. When U.S. dollar is accepted as payment in trading transactions, the Chinese companies usually factor in the foreign exchange risk by adjusting their price. By completing the payment in Yuan, the importers stand a better chance to negotiate for a lower price or even obtaining better trade terms. Moreover, invoicing in Yuan helps to increase the supplier base in China importers too, as the Chinese companies appreciate this practice a lot. With a bigger supplier base from which to choose, the importers obtain a bigger bargaining power in negotiating price and terms. On the same hand, a globalised Yuan brings several advantages to international investors as well. International investors could diversify their investment and currency risk by investing into other currency like Yuan, rather than just the U.S. dollar or euro. The modern portfolio theory states that the more unrelated assets you have, the less impact of currency risk will be encountered through diversification (http://www.sec.gov/investor/pubs/assetallocation.htm). Just like any democracy, at least two parties are needed to achieve balance. The same goes to international currencies, with an extra option to invest in, investors could enjoy the diversification advantage. Today, U.S. dollar is the dominant currency; therefore, U.S. domestic fiscal and monetary policy has significant effect outside and inside the United States. If there is more international currency, then there would be more choices and investors will be less susceptible to U.S. policy decisions. While the impact caused by the 2007 global economic crisis did not affect a huge number of Chinese investors, but the fallout has been serious, as values of the savings around the world have plummeted. The 2007 financial crisis has a great impact on the mind-set of international investors, especially, about the safeness of the dollar. National banks, China’s included, have experienced the fall of the value of their foreign currency reserves significantly, as the dollar and euro weakened during the crisis period. Therefore, more choices of international reserve currencies can provide better checks and balances, which are very essential to monetary policy makers around the world, showing the benefits of Yuan being internationalised and as a dominant currency. Furthermore, if Yuan ever became the dominant currency, it would allow China, which holds substantial amount of money reserves, to be less dependent on foreign currency reserves, and therefore less affected by the currency fluctuations. Moreover, a globalised Yuan could bring direct financial benefits to China in the form of seigniorage as well. Seigniorage is the profit made by a government by issuing their currency with the difference between the fair value of the money and the cost of producing it, explained by (investopedia) http://www.investopedia.com/terms/s/seigniorage.asp. So if the fair value of the money is greater than the cost of producing it, the money, then China will enjoy a financial gain. Some economists even estimate this could amount up to USD of 2.5 billion a year. Other than seigniorage, if Yuan became the dominant currency, China could also enjoys further benefits, including prestige, lower borrowing costs for the government, corporations, and households, and a much lower if not zero probability of a debt and financial crisis. The dominance of Yuan would bring obvious benefits to China, which includes a lower risk of capital loss triggered by a depreciation of the U.S. dollar or euro. What about the effects to the Europe, United States, and other countries? Firstly, since the Western economy is not performing well recently, if the benefits from the dominance of the Yuan helps to convince the Chinese to buy more of their debt, it could aid to hold down their borrowing cost, indirectly billing them out from the poor economy. Secondly, with a greater Yuan flexibility, China will worry less about the capital loss on its foreign exchange holdings. As such, China would be more willing to hold on to their fixed exchange rate regime. This could benefits not only to China, but to all the countries that perform trading activities with China as well. During the 2008 GFC, China decided to change back to a fixed exchange rate regime after implementing a semi-floated currency regime for a short couple of years http://www.investopedia.com/articles/forex/08/pegged-vs-floating-currencies.asp. This decision aided the Chinese economy to emerge 2 years later relatively well. Since then, China has been trying to control its economy from growing too fast. If afloating exchange rate regime is used by China, American demand for Chinese goods would definitely force up the exchange rate and inflate the price of the Chinese goods, causing the Chinese goods less desirable eventually http://www.netplaces.com/economics/foreign-exch ange-and-the-balance-of-payments/to-fix-or-float-that-is-the-question.htm. This is undoubtedly important to the Western governments. Thus this should be considered worth facilitating. However, some might believe that the United States would never tolerate the humiliation with its government debt denominated in a foreign currency. But if the U.S. does, it certainly would not be the first country to do so. Most countries denominated their debt in foreign currency whenever they need to make borrowings from the international capital market. Furthermore, history reveals that the U.S. is very pragmatic. History also shows that the U.S. has denominated part of its government debt in foreign currency before, mostly the deutsche mark, a German currency before the adoption of euro, in the 1970s. In any case, everyone has to weigh the benefits and the costs for doing everything. In my opinion, the benefits outweigh the costs in this case. To a certain extent, an international role for the Yuan seems inevitable. How often and widely a currency is used and traded around the globe is generally a function of how significant and important its home country is to the world economy. In the 19th century, while the British Empire reigned supreme, the British currency, Pound was recognised as the top international currency. Ever since World War II, the role of Pound has been substituted by the U.S. dollar, as the U.S. is currently the worlds largest economy. Now that China is catching up rapidly with a stable economy growth that placed itself second after the U.S., the potential of its currency may progress to a point where it substitutes U.S. dollar as a global currency. If the growth continues at its current pace, it is possible that China’s economy could surpass the United States within the next two decades. Therefore, there is a strong reason to believe that Yuan could replace the U.S. dollar and dash into the big lea gue of international currencies. http://www.bloomberg.com/news/2010-08-16/china-economy-passes-japan-s-in-second-quarter-capping-three-decade-rise.html However, the Yuan is still currently far from that league. As a matter of fact, it can hardly be found in the world currency markets. The chief reason is cause by the Chinese policy. The Chinese Government restrictions restrain the Yuan from being traded freely around the globe or being fully convertible into other currencies in almost all financial transactions. The Chinese currency value is pegged to a basket full of currencies which are most probably dominated by the U.S. dollar and is only permitted to adjust each day within an allowed and narrow band. With such limitations, the potential of Yuan cannot progress very far. http://content.time.com/time/world/article/0,8599,1911671,00.html Nevertheless, it is believed that the Yuan could be one of the world’s top currencies and may be able to fully convertible sometime in the future. Therefore, I believe that the Yuan could serve as a potential hedge against the U.S. dollar as the dominant currency to the world. In conclusion there are numerous advantages as for Yuan to be the dominant currency, including the stability of Yuan compared to the U.S. dollar, benefits of globalisation of Yuan to the Chinese companies, foreign companies, international importers, investors, China, Europe, United State and other country around the world. Thus, I do believe that the Yuan should replace the U.S. dollar as the dominant currency in the global financial system.