Archive for November 2012

Business Tips: 8 Qualities of Fearless Entrepreneurs

Business Tips: 8 Qualities of Fearless Entrepreneurs: 8 Qualities of Fearless Entrepreneurs You know the type: They do things other business owners only dream of doing--and usually succeed. H...


Invention and Innovation

Invention is the formulation of new ideas for products or processes.

Innovation is all about the practical application of new inventions into marketable products or services. An example is microwave oven.

A person patents an idea or a product in order to legaly own the idea or product that no other business can steal it.

A copy right is when a company, owns  a product in which others can only it if they ask permisson from the company owning it.

Trademark-any name, symbol, figure, letter, word, or mark  adopted andused by a manufacturer or merchant in order to designate his orher goods and to distinguish them from those manufactured orsold by others.


Bloging Sundays



Invention
An invention can be a new idea or device that has  never been made before that is yours, an example can be the original cell phone, which was made in America, that started over a argument of wireless phones.
Innovation
Innovation is when you put a product into the marketplace or in service, an example can be the email.
Patent
You patent a product or idea to ensure that it belongs to you and no one can copy your idea, those who violate it can be sued.
Copy Right
Copy right is  when a company  person or persons make the product theirs and can only be used by other persons with their permission, if a person is caught violating this they can be sued.
Trademark
A trademark is a protection of a symbol, word or letter from being stolen or used by other people
Example
Trademark– The 8 year trademark battle between McCurry and McDonalds, it was about McCurry infringing the iconic trademark.

Business Plans

If you want to get ahead of the game take a look at THIS presentation.

Inventions and Innovations


Invention: An invention is something that a person or group of people have created something to achieve a new goal. An example of an invention would be the Magnavox Odyssey, made in 1972. It was the first ever home games console. These can be sold for profit, as there will be no competitors as you have been the first one to invent the item.
Innovation: An innovation is like an invention, but an improvement on something, or a production of a better way to achieve something than used previously. An example of an innovation would be the Odyssey 200, an improvement on the Magnavox Odyssey.
Patent: A patent is a right granted to an inventor to ensure that another company does not steal the idea of their new product. Patenting is basically claiming something as your legal intellectual property, like copyright. This usually only lasts for a limited time, depending on the format of the creation.
Copyright: A copyright is a legal concept which gives the creator of an original piece of work (an invention) exclusive rights to it, so noone is allowed to copy the work, or use it in their name. These also only usually last for a limited time.
Trademark: A trademark shows if something is owned by a certain brand and is copyrighted. This is shown to stop people from taking materials without realising it is in the use of another company and is illegal to do so.

Invention & innovation

Invention & Innovation

Invention & innovation
Invention has been an outstanding importance in the development of our economy as it is today. Invention defines the competition between companies and makes the market a battlefield for better products. An example would be in the airline business, some airlines provide larger seats or larger personal tv screens while on the other hand a recent popularity and is starting to be  wanted from an airline is internet connection. Lately a Swedish airline provides free internet to all passengers, they explain this would attract more passengers as it makes them stand out fro others which is one of the most important rules in a business. To stand out from others. Innovation puts ideas in context and how the ideas are able to be put into reality.
Definition of patent, copyright and trademark
         Patent; A patent is an expensive document which protects all your new and innovative, intellectual property but only for a while.
         Copyright; Is a protection against your idea which has to be new and not done before. This allows other companies not to mimic your idea.
         Trademark; To protect a specific idea for example the noise an iphone makes when a message comes in.
An example of a trademark was the case of Apple wanting to buyout the name Ping from the company Ping. Ping thinks this is a good opportunity to get a flow in of cash by allowing apple to use the name Ping for its new music based social network which they hope will take over my space.

Innovation, Invention and Business


Innovation and invention have been key factors in the economic progress of businesses and countries and the reason behind why our world changes so radically around us. Inventors see a connection between two things which others couldn’t and give their competitors some hard as they just try to play catch up. 

Rounded windows in aircrafts allowed Boeing and the American aircraft industry to take over from the british. The comet aircraft manufactured in Britain had square windows which at high altitudes would explode as a result of stresses in the corners and people stopped traveling until Boeing came up with rounded windows which  had better structural integrity and now the USA dominates the aerospace industry. This innovation from Boeing has put them ahead of the game for over 60 years. It also put british airplane manufactures out of business caused by the many Comet disasters. 

Innovation here meant we could fly from one place on this planet to any other place on this planet in under 24 hours safely and has improved our lifestyle greatly. The economic advantages are not just restricted to the manufacturers of these aircrafts but the entire world as businesses today are so reliant on the aircraft industry in today’s global economy. 

The profitability of these ideas mean companies want to take ownership of these ideas in order to be the sole recipients of the profits and is easy to register with patent ownership. Unfortunately it isn’t that simple, as the patent ownership system is too antiquated for present day business. The weaknesses were best demonstrated in the Apple vs Samsung lawsuit as Apple owns the patent of a rectangular smartphone with rounded edges which is outrageous. This hurts the consumers and therefor the economy as competition disappears due to the restrictiveness of these ownership laws. It also restricts new ideas which build on the existence of older ideas. The cost of applying for a patent is currently $30,000 which means the idea of somebody poor to come up with an idea and change his life is less likely than before. S/he would have to get investors in order to apply for the patent and s/he would have to negotiate percentages with the investors for his/her idea. Some consider this unfair to the poor.

Invention and Innovation


The dual flush loo is an example of invention and innovation. It has two buttons to dispatch different amounts of water from the cistern - a half-flush for liquid waste and a full one for more heavy-duty deposits.
Innovation is the development of new customers value through solutions that meet new needs, inarticulate needs, or old customer and market needs in new ways. This is accomplished through different or more effective productsprocessesservicestechnologies, or ideas that are readily available to marketsgovernments, and society. Innovation differs from invention in that innovation refers to the use of a better and, as a result, novel idea or method, whereas invention refers more directly to the creation of the idea or method itself. Innovation differs from improvement in that innovation refers to the notion of doing something different rather than doing the same thing better.
An invention is a unique or novel device, method, composition or process. It may be an improvement upon a machine or product, or a new process for creating an object or a result. An invention that achieves a completely unique function or result may be a radical breakthrough.
Definitions
Patent: A government authority to an individual or organization conferring a right or title
Copyright: The exclusive legal right, given to an originator or an assigned person to print, publish, perform, film, or record literary, artistic, or musical material.
Trademark: A symbol, word, or words legally registered or established by use as representing a company or product. 
An example of a dispute that arose over copyright was Apple suing Samsung for copying their inventive designs. http://www.bbc.co.uk/news/technology-19463693                    





Invention and Innovation:

An invention is a new idea and the means of its accomplishment. the invention must have a use and be proven as workable, but to be an innovation it must also be replicable and at an economic cost that will satisfy a specific need. Only a few inventions lead to innovations because not all of them are economically feasible (an analysis to see if a proposed object will be profitable). 

Patent, copy right and trademark:

Patent: Patent is a form of intellectual property, that consist of a set of exclusive rules granted by the sovereign state to the inventor for a certain period of time in exchange for public disclosure of the invention.

Copyright: Copyright is a legal concept giving the creator of an original piece of work exclusive rights. 

Trademark: A trademark is a distinctive sign or indicator used by an individual, firm or other legal entity, allowing customers to distinguish their products from those of other entities.


Blogging Sunday 25/11/12 Hannan Badar


Invention means when you have a original idea and can show the theory of how it works.An example of an invention can be the first car.  Innovation is when you are being creative and thinking outside the box and putting your ideas into practical use. There are two types of innovation, product and process innovation. Product innovation is when one brings new product ideas to the marketplace such as the iPhone. Process innovation is new ways of working, such as the assembly line of the Model T.

A patent for an invention is to grant the property rights of an invention to inventor. The patent grant is ‘the right to to exclude others from making, using offering for sale or selling’ the invention. The patent makes it unlawful for the anyone to copy the idea of the inventor for 20 years after the patent has been issued. The patent office will only grant one a patent if their invention has never been seen publicly before and if it is a significant step forward for the way we think and has practical applications. If a new small business wanted to patent something, it would be hard as it can be very expensive and difficult.

Copyright is a form of protection to the authors and inventors of something they have created. This includes things in literacy, dramatic, musical, artistic and other pieces of intellectual work both published and unpublished. The 1976 Copyright Act gives the owner of copyright the exclusive right to reproduce their copyrighted product. Although ideas can be copyrighted, the idea can be changed An example is the copyrighted description on how a machine works. The copyright signature causes people not to be able to copy the description, but people can make another description similar to the copyrighted description. This is allowed as the copyrighted description has been altered.

A trademark is a name, symbol, word or device that is used in trade with goods in order to indicate the source of the good and not to confuse them with other goods. Trademark rights are used to prevents others from confusing themselves with another mark and can also be used to distinguish certain good from others. 

Blogging Sunday - moosa aamir :)

InventionSomething new created by man (or women). An invention is a new composition, device, or process. For example, Marshmallows were invented in ancient Egypt. It was a honey candy that was flavored and thickened with Marsh-Mallow plant sap. The inventor of the marshmallows instantly applied for a patent before proceeding with the manufacturing and development of his product.
InnovationInnovation means ahead of the times, novel, visionary and original. It means 'new'. Cars are a great example of innovation which had a positive effect on civilization as people are able to travel more faster and efficiently from place to place.
Patent a grant of property rights to an inventor for an invention. This right excludes others from making, using, selling or importing the invention without the inventor's consent. Patents are effective for 20 years.
Copyright Copyright is the right to control your own creative work, and the prohibition of others to use your work without your permission. It restricts others from copying your idea/invention.
TrademarkTrademarks can be names of products or services, logos, slogans, packaging and even sounds and smells. In essence, a trademark can be almost anything that is used to identify a particular product or service. Registering a trademark grants the owner exclusive rights to the mark within the specified industry. 

Blogging Sundays. Calum Dobie

Invention and Innovation.
Invention means having a totally original idea, and showing how it can work in theory. In business, the ideal  invention is one that can be patented. a different type of invention is the creation of a new piece of writing, drawing or music.
The creator of the written piece, drawing, or music is protected by copyright law. this means that anyone playing an Eminem song/record in public will have to pay songwriting fees to Eminem. similarly to photocopy a book or image without permission from  the creator.
A patent makes it unlawful for anyone to copy it for 20 years after the patent has been taken out. This system provides the incentive for the inventors. Many years without competition due to the patent, lets the inventor make a big profit from it.The patent  office will only grant  a patent if the invention has not been shown publicly.For a new business, patenting an invention can be difficult as, there are expensive fees from the patenting office.
Innovation means putting a new idea into practice. this could be bringing a new product to the market or by getting an organisation to try a new way of working. there are 2 types of innovation.Product innovation and process innovation. An example of process innovation is mass production, this process revolutionized the way products were made, this processed even sparked the a american boom. An example of product innovation is the iPhone it has released new models from iphone to iphone 5 same with the ipad. ipad to ipad 3 and even an ipad mini.

Some stories of copyright infringement and violations of patents between apple and samsung.
http://www.bbc.co.uk/news/business-20440474
http://www.bbc.co.uk/news/technology-19377261
http://www.bbc.co.uk/news/technology-19800342
http://www.bbc.co.uk/news/technology-19816642

task 1 and 2 sunday


Invention:  a brand new concept or idea that you have produced.
Inovation: is when you take a previous concept and find another use for it or ways to improve it.
Patent: a sole right to something that has been approved by government officials.
Copy right: a legal right the originator has to literary, musical, or artistic work,
 whether printed,audio, video, etc.: 
trade mark: A symbol, word, or words legally registered or established by use as representing a company or product.

Invention and innovation

Invention and innovation

Invention is the formulation of new ideas for products and processes.
Innovation is all about the practical application of new inventions into marketable products or services.

Most of us have visions of mad inventors who come up with ideas, with no practical use. Like everything else in business studies, we are interested in activities that actually help the firm meet its objectives, such as growth, profitability, increased market share or stability - so it is innovation, rather than invention, that really counts.   

  • Patent is a A government authority to an individual or organization conferring a right or title, esp. the sole right to make, use, or sell some.
  • Copyright is the exclusive legal right, given to an originator or an assigner to print, publish, perform, film, or record literary, artistic. 
  • Trademark is a symbol, word, or words legally registered or established by use as representing a company or product.
Here are some links showing you some articles representing patent, trademark and copyright....

 Articles involving trademark Copyright in the news patent in the news- article

Invention and Innovation -Buse Solmaz

Invention and Innovation



  • Invention if the formulation of new ideas for products or processes.
  • Innovation is all about the practical application of new inventions into marketable products or services.

  • Most of us have visions of mad inventors who come up with ideas with no practical use! Like everything else in Business Studies, we are interested in activities that actually help a firm meet its objectives, such as growth, profitability, increased market share or stability – so it is Innovation, rather than Invention, that really counts

    http://www.pnas.org/content/93/23/12709.short  <----- an article.

    Product (or service) Innovation

    Advantages might include (note links to marketing)
    • ‘First mover advantage’ – which can include some of the following;
    • Higher prices and profitability
    • Added value
    • Opportunity to build early customer loyalty
    • Enhanced reputation as an innovative company
    • Public Relations – e.g. news coverage
    • Increased market share

    Process Innovation

    This has to do with finding better or more efficient ways of
    • producing existing products, or
    • delivering existing services.
    Advantages might include:
    • Reduced costs
    • Improved quality
    • More responsive customer service
    • Greater flexibility
    Possible drawbacks
    • Loss of jobs, especially if work is outsourced
    • Need for re-training of workers

    Invention and innovation by greg

    Invention and Innovation
    Invention is the creation of new ideas. Innovation is the practical application of a new idea. an example of invention would be the toilet invented by Thomas crapper. This would also be an example of innovation as it is a practical application as well.

    Patent, Copy Right and Trademark
    A patent is a form of intellectual property that is given for a set amount of time. Copy right gives the owner of a certain thing exclusive rights to it. A trade mark is a sign that can be used by a single person or a business to show that the content comes from a unique source.

    News about copyright

    http://www.bbc.co.uk/news/technology-19869316
    http://www.bbc.co.uk/news/entertainment-arts-20422388
    http://www.bbc.co.uk/news/technology-20165657

    Effect of protection of ideas
    Protection of ideas can usually be a good thing but with every thing there is a bad side to it. If the person that owns the rights to something dies without telling someone of power who he would like to give it to when he dies the copyright is lost and anyone that wants the idea can take it and use it.
    Copyright also means that if you give someone permission to use your idea but not in a formal manner. for example you just tell them they can. you could get into a lot of trouble

    Invention is a unique or novel device, method, composition or process. It may be an improvement upon a machine or product, or a new process for creating an object or a result. An example of this would be  The dual flush loo, It has two buttons to dispatch different amounts of water from the cistern - a half-flush for liquid waste and a full one for more heavy-duty deposits. It was designed and produced in 1980.





    Innovation is the development of new customers value through solutions that meet new needs, inarticulate needs, or old customer and market needs in new ways.

    Patent  is a form of intellectual property. It consists of a set of exclusive rights granted by a sovereign state to an inventor or their assignee for a limited period of time, in exchange for the public disclosure of the invention.

    Copyright is a legal concept, enacted by most governments, giving the creator of an original product rights to it, usually for a limited time. Generally, it is "the right to copy", but also gives the copyright holder the right to be credited for the work, to determine who may adapt the work to other forms, who may perform the work, who may financially benefit from it, and other related rights


    trademarktrade mark, or trade-mark is a distinctive sign or indicator used by an individual, business organization, or other legal entity to identify for consumers that the products or services on or with which the trademark appears originate from a unique source, designated for a specific market, and to distinguish its products or services from those of other entities.



    A copyright case-http://mashable.com/2012/06/07/apple-samsung-galaxy-siii/

    Protecting business ideas is mostly positive, as otherwise someone may steal your idea and make money themselves, this would be happening all the time if copyright laws weren't in place as people would try and take the idea for their own Benifit  this is one of the negatives of having copyrights as you cannot develop someone elses idea as they will think you will make more profit. Overall the positives overpower the negatives as in my opinion you should think of your own ideas in order to make money and not just steal someone elses.

    Half-Term Project Robert Jex


    Business Half-Term Project
    Though Dr. Raja may have a good idea of selling laser-skin treatment, the idea is not really controversial, or new.
    there is however the benefit that it is a rare form of treatment that is very expensive and difficult to locate. There is the downside however of quality and professionalism, as the treatment requires well-trained and qualified people for the job, who are hard to find, and expensive to employ.
    Partnership would clearly benefit Dr. Raja more, because the partner would end up paying most of the costs for equipment, employees, location ECT, because Dr. Raja would of course be paid a significant figure for her knowledge of Laser-Treatment, whereas the partner would only be paid as much as the business made, so they might not make as much money due to a lack of customers.
    This may put off potential partners, as the key point of any business is “make money”.
    Dr. Raja’s qualifications mean that she couldn’t get a job anywhere else, so she has basically opened herself to failure, because she is now unable to back out of the business, and without a partner, she is unlikely to make any money.

    TODAYS LESSON!

     Today's Lesson! By: Greg and Ana (hashtag... probloggers)


    What were we learning about?
    Today we were learning how to define the three main types of training and being able to explain the advantages and disadvantages to each type of training linking it to our previous lesson on motivation. We should also be able to judge why training can be both motivating and demotivating.

    Induction training:
    What is the definition of induction training?
    Training given to new employees to prepare them for the requirements of their place of work.

    5 most important aspects:
    Learning about the duties of the job
    Welfare and employee benefits and facilities.
    Learning the values and aims of the buisness.
    Learning about the internal workings and policies of the buisness.
    Terms and conditions of employment.

    On-the-job:
     On the job training is when employees recieve training whilst remaining in the workplace. The main methods of on the job training include: demonstrating/instructions,(showing the trainee how to do the job), coaching (a more intensive method of training that involves a close working relationship between an experienced employee and a trainee), job rotation (this is when the trainee is given several jobs in succession to gain experience of a wide range of activities) and projects (this is when employees join a project team giving them exposure to other parts of the business and allowing them to take part in new activities.
    An advantage of on the job training could be that it is the most cost effective whilst a disadvantage could be that the quality of the training depends on the ability of the trainer and time available

    Off-the-job training:
    This occurs when employees are taken away from the place of work to be trained. Common methods, of off-the-job training include; day release (this is when employees take time off work to attend a local college or training center), distance learning/evening classes, block release courses- which may involve several weeks at a local college, sandwich courses (this is when the employee spends a longer period of time at college before returning to work), sponsored courses in high education, self study/computer based training.
    An advantage of off-the-job training is a wider range of skills or qualifications can be obtained and a disadvantage its more expensive to fund.

    What activities did we do in today's lesson:
    Today's class included learning what the definition of induction training was and working with your peers to decide which 5 aspects of induction training are most important. In today's lesson, we also on the job and off the job training this involved lots of group work and discussions. We also produced a mini poster with a maximum of 5 words and use of unlimited pictures to describe your training type.Students were also moved around to explain to a different person to whom they normally sit next to, what off-the-job training is or on-the-job training. At the end of the lesson, we all received a sheet with E-A* grade questions about training methods, we are to take these home and bring them to tomorrow's lesson to finish. We finished the lesson by reviewing our learning with an activity that involves one person going up to the front and talking about what we learned to today (on-the-job training and off-the-training) for a whole minute straight! Robert was today's winner :)

    Opinions on the lesson?
    "It was very challenging in a good way" -Taimur.
    "Doing very well and its fun in a creative way of learning" - Emilie.
    "Productive lesson" -Buse.
    "I feel that there wasn't enough time to do the poster" -Matt.
    "I feel that this lesson is challenging me, its fun but a bit rushed. I enjoyed this method of learning" - Rob.
    "Its not challenging enough because you get it easily at the beginning and it drags on. It should be more fast pace" - Danial.
    "I enjoyed the team work" -Moosa.
    "Its good and it's fun" - Mike.
    "I'm learning different ways of how people are being trained" - Dobie.

    Conversation of the day:
    Josh K: "What is navigation? There is a maze bet you couldn't do it"
    Taimur: "That's pretty easy..."

    Cash Flow

    What is Cash flow?

    Cash flow is the movement of money into and out of a business. It is usualy measured through a finite period of time. Measurement of a cash flow indicates the value and situation of a company.

    Why is Cash flow usefull?

    Cash flow is usefull in many ways. Here are some examples;
    • To determine a products rate of return.
    • To notify a business of its value and situation.
    • An alternative measure of a business profits.
    • To evaluate the risks within a product.
    How does a business indicate a sistuation by looking at its cash flow?

    A business can acess a situation or even an advantage ina business by looking at its cash flow.
    When a business as a larger amount of money flowing into a business then out it represents that the business is being succesful and is spending its money wisely.

    When a business has a larger outflow then an inflow it represents the company is having trouble and should spend its money more wisely

    How do business have an inflow of cash?

    business can get an inflow of cash by sales, loans from banks and interest.

    By Thibaut

    The Business Cycle

    The business cycle is all about GDP. GDP (Gross Domestic Product) affects the amount of money that us produced by many businesses. For example, if the GDP decreases, businesses will make less money, and suffer other consequences as such. If the GDP increases, businesses will earn more money, and the economy will be greater than when it is suffering from a low GDP. To understand more, watch this video.
    Th Business cycle itself can fluctuate unpredictably. Usually the business may do well at first, with good income, potentially higher wages, and more motivated upper workforce. Then, the business may take a hit from a lack of sales for whatever reason, and have some worse off times. This can be escaped, and the business may begin to grow again. Some businesses may have better uptime than downtime, and will expand successfully, while more unsuccessful ones will have greater downtime than uptime and may end up as a filed business.

    Cash Flow By Sher-Ali Khan

    Cash Flow

    How does it work?

    Cash flow is the movement of money into and out of a business but it is not the actual money. Cash flow is sometimes unpredictable in business as the amount of money changes depending on what are they doing.  



    Inflow:

    Inflow is when a business has money come in, from sales, loans from banks or selling their assets or when they receive interest from them.

    Outflow:

    Outflow is when money moves out of the business, like when the business has to pay wages, salaries  suppliers or when interest has to be payed to the bank.


    Inflation and Interest Rates

    Inflation is the rate at which the general level of prices for goods and services is rising, and, subsequently, purchasing power is falling. Inflation will cause the product price to increase for example: A chocolate bar costs $1, 20% inflation of the chocolate bar will make it cost $1.20. And the problem with higher prices is that there will be a less demand for it in which case customers will stop purchasing them.

    Interest rate is the extra percentage of income that a lender charges the borrower within a time given. An example of that would be a lender gives $1000 with 1% interest per year, the person borrowing the money must return $1010 a year later.

    Inflation and Interest rates. Calum Dobie


    Inflation is the rise in the cost of food and services in a economy(mainly due to the supply of cash). The rate of inflation is measured in consumer price index(CPI) and product price index(PPI). Over time,as the cost of goods and services increase, the value of a dollar is going to fall because a person won't be able to purchase as much with that dollar as he/she previously could.

    Inflation chart


    The amount charged, expressed as a percentage of principal, by a lender to a borrower for the use of assets. Interest rates are typically noted on an annual basis, known as the annual percentage rate(APR). The assets borrowed could include, cash, consumers goods,  large assets, such as a vehicle or building. Interest is essentially a rental, or leasing charge to the borrower, for the asset's use. In the case of a large asset, like a vehicle or building, the interest rate is sometimes known as the “lease rate”. There are to types of interest, compound interest and  simple interest 



    Stakeholders-Robert Jex


    Stakeholder Identification
    the easy way to identify stakeholders is to identify those who are directly affected by the project and those who are indirectly affected. Examples of directly affected stakeholders are the project team members or a customer who the project is being done for. Indirectly affected people may include a partner organization or members of the local community. Directly affected stakeholders will usually have much more influence and impact of a project than those indirectly affected. 

    A Stakeholder can be...
    • The project manager, sponsor, and team
    • The customer (individual or organization)
    • Suppliers of material or other resources
    • Creditors
    • Employees
    • Unions
    • City, community, or other geographic region
    • Professional organizations
    • Any individual or group impacted by the project
    • Any individual or group in a position to support or prevent project success
    • Internal or external; local or international

    Exchange rates

    Exchange rates
    The price of one country's currency expressed in another country's currency. In other words, the rate at which one currency can be exchanged for another. For example, the higher the exchange rate for one euro in terms of one yen, the lower the relative value of the yen.


    Like most other rates in economics, the exchange rate is essentially a price and can be analyzed in the same way we would a price. Take a typical supermarket price, say lemons are selling at the price of 3 for a dollar or 33 cents each. Then we can think of the dollar-to-lemon exchange rate as being 3 lemons because if we give up one dollar, we can get three lemons in return. Similarly, the lemon-to-dollar exchange rate is 1/3 of a dollar or 33 cents, because if you sell a lemon, you will get 33 cents in return.


    Automatic balance of payments adjustment - Any balance of payments disequilibrium will tend to be rectified by a change in the exchange rate. For example, if a country has a balance of payments deficit then the currency should depreciate. 
    Disadvantages:
    • Lack of investment - The uncertainty can lead to a lack of investment internally as well as from abroad.

    • Lack of discipline in economic management - As inflation is not punished there is a danger that governments will follow inflationary economic policies that then lead to a level of inflation that can cause problems for the economy. The presence of an inflation target should help overcome this.

    Inflation and interest rates

    Inflation is a phenomenon where prices increase due to increased supply of money. If you make more money and inject it into the economy, prices will eventually increase. No one consciously does this, it just happens, the economy reacts to more money existing.

    Interest rates
    If you deposit money into a savings account, the bank pays you interest.
    If you borrow money (get a loan), you pay the bank the interest.
    Interest is the cost of borrowing money. I have to pay an additional cost (the interest) to borrow the money

    The Impact of Exchange Rates on Small Businesses

    Most small business owners don't pay much attention to exchange rates unless there is a major crisis but it has a significant impact on their running costs and profitability as most businesses are connected globally some how. For example, if you're a small coffee it would be advantageous if your country has low inflation rates as this means you can buy more products for less; the coffee beans and machinery which are imported for the coffee shop to run are easier to afford and customer loyalty remains high as people don't quit buying coffee because of rising living costs.

    Cash flow by Gregor McMurray


    Cash Flow

    By Gregor McMurray

    What is cash flow?

    Cash flow is the money and funds that go in and out of your business. It is important to manage this as it can tell you what might happen in the future and how well you are managing your money.


    Positive cash flow


    Positive cash flow is when the money that is going into your business is more than the amount of money that is leaving your business. This is good as you are gaining money and gaining money is what a business is all about

    Negative cash flow

    Negative cash flow is basically the complete opposite of positive cash flow. This happens when the amount of money that is leaving your business through buying and paying bills is more than the amount of money that is entering the business.

    Article on a company that beats slowdown through cash flow

    http://articles.economictimes.indiatimes.com/2008-08-06/news/27715742_1_free-cash-flows-balance-sheets


    The business cycle is a periodic but irregular up and down movement in economic activity measured by fluctuations in real GDP and other macroeconomic variables. A business cycle is not a regular, predictable, or repeating phenomenon like the swing of the pendulum of a clock. Its timing is random and usually unpredictable. 
    A business cycle is identified as a sequence of four phases:
             Contraction: A slowdown in the pace of economic activity
             The lower turning point of a business cycle, where a contraction turns into an expansion
             Expansion: A speedup in the pace of economic activity
             Peak: The upper turning of a business cycle
    source - About.com



    Inflation and Interest Rates



    Inflation!

    What is inflation?Inflation is a sustained increase in the average price of all goods and services produced in an economy. The rate of inflation is measured by the annual percentage change in consumer prices.
    1. The Real Rate of Interest that compensates lenders for postponing their own spending during the term of the loan.
    2. An Inflation Premium to offset the possibility that inflation may erode the value of the money during the term of the loan.  A unit of money (dollar, peso, etc) will purchase progressively fewer goods and services during a period of inflation, so the lender must increase the interest rate to compensate for that loss..
    3. Various Risk Premiums to compensate the lender for risky loans such as those that are unsecured, made to borrowers with questionable credit ratings, or illiquid loans that the lender may not be able to readily resell.
    What are the main causes of inflation?
    • Inflation can come from both the demand and the supply-side and also from internal and external economic events.
    • Some inflationary pressures direct from the domestic economy, for example the decisions of the utility businesses providing electricity or gas or water on their tariffs for the year ahead, or the pricing strategies of the food retailers based on the strength of demand and competitive pressure in their markets. A rise in the rate of VAT would also be a cause of increased inflation in the short term because it increases a firm’s production costs.
    • Inflation can also come from external sources, for example a sustained rise in the price of crude oil or other imported commodities, foodstuffs and beverages.
    • Fluctuations in the exchange rate can also affect inflation – for example a fall in the value of the pound against other currencies might cause higher import prices for items such as foodstuffs from Western Europe or technology supplies from the United States – which feeds through directly or indirectly into the consumer price index.



    Cash flow
    A cash flow is a revenue or expense stream that changes a cash account over a given period, cash
    inflows usually arise from one of three activities, financing, operations and investing.
    Positive cash flow
    Positive cash flow is when money that is going into your business is more other the money that’s leaving your business, this is good as you are gaining money is all a business is all about, it is also good as money can be used to expand you business and make more positive cash flow.
    Negative cash flow
    Negative cash flow is when money that is going into your business is more then the money that leaving your business is more than the money entering your business, this is bad because you are losing money and your business could fail.

    The Business Cycle


    The business cycle is the periodic but irregular up-and-down movements in economic activity, measured by fluctuations in real GDP and other macroeconomic variables. The recurring and fluctuating level of economic activity that an economy experiences over a long period of time is the correct definition of the business cycle. The five stages of the business cycle are growth (expansion), peak, recession (contraction), trough and recovery. At one time, business cycles were thought to be extremely regular, with predictable durationbut today they are widely believed to be irregular. 

    "Investopedia explains 'Business Cycle'
    Since the World War II, most business cycles have lasted three to five years from peak to peak. The average duration of an expansion is 44.8 months and the average duration of a recession is 11 months. As a comparison, the Great Depression - which saw a decline in economic activity from 1929 to 1933 - lasted 43 months.
    "
    Read more: http://www.investopedia.com/terms/b/businesscycle.asp#ixzz2CYocFmEd

    In general, a business cycle describes changes in the demand-side of the economy as measured by GDP. In other words, it is basically the lack of stability in a business. The picture below describes the steps of the business cycle. 








    Exchange rates


    Exchange rates: what are they, where do they occur most often, and why are they important?

    Exchange rates are the price of one country's currency expressed in another country's currency. In other words, the rate at which one currency can be exchanged for another. For example, the higher the exchange rate for one euro in terms of one yen, the lower the relative value of the yen.

    In most financial papers, currencies are expressed in terms of U.S. dollars, while the dollar is commonly compared to the Japanese yen, the British pound and the euro. As of the beginning of 2006, the exchange rate of one U.S. dollar for one euro was about 0.84, which means that one dollar can be exchanged for 0.84 euros.
    Exchange Rates are very important for any country as they determine the level of imports and exports. If a domestic currency appreciates with respect to a foreign currency, imported goods will be cheaper in the domestic market and local companies would find that their foreign competitor's goods become more attractive to customers. If the country has a strong currency then its goods become more expensive in the international market, which results in lost competitiveness. This is the reason that China, despite much pressure from the United States, is not letting its Yuan appreciate.

    look at some of todays exchange rates by viewing this link:
    http://www.ecb.int/stats/exchange/eurofxref/html/index.en.html
     
    Compare the exchange rates from certain countries by looking at these graphs:




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