Alignment Of The Human Resources Strategy Commerce Essay

A corporate scheme is the one which represents the overall vision and the mission of an administration. Many companies fail to concentrate on this and all they focus is on the bring forthing the goods and services trusting it satisfies the demands and wants of the client which is besides of import but is non everything an administration does. Let ‘s get down up with the intent of the assignment, the ground for this research is to measure the linkage of a company ‘s human resource ‘s scheme and the corporate scheme. Now by the corporate scheme here we mean is the overall vision set by the administration. This statement can be justified by many writers and is the existent fact that everyone in the administration should cognize. The ground is that the administrations fail largely is, they are non able to set up an effective scheme ( Verena, V 2006 ) of their functional countries such as the human resources, selling, finance etc. The assignment is concentrating chiefly with the human resources and it ‘s planning and the corporate scheme. â€Å" Corporate scheme concerns two different inquiries: what concern the corporation should be in and how the corporate office should pull off the array of the concern units. † ( Porter, M. 1990 ) The above definition reveals two facets that first every administration should cognize the industry it is covering. Second, the scope of concern units a company deals in. Now it is obvious that the corporate scheme can non be fulfilled without the proper engagement of the human resources in other words the employees to pull out the best possible result ( Rowe, A. 2006 ) . Thus the construct of alining the human resources scheme could be extracted by this impression. Therefore, this assignment evaluates the schemes laid by Singapore Airlines in order to accomplish the overall corporate scheme of the administration. The kernel of this research is the critical factor which would hold made the managing of the employees even better based on the literature used in the appraisal. THE CORPORATE STRATEGY AND OBJECTIVES OF SINGAPORE AIRLINESOverviewSingapore Airlines is a diversified company covering in assorted related concerns having harmonizing to an article written by Heracleous, L. , Wirtz, J. , viz. : Singapore Airport Terminal ( 80.8 % ) Singapore Engineering Company ( 81 % ) Singapore Airlines Cargo ( 100 % ) Silk Air ( 100 % ) Tiger Airways ( 49 % ) Virgin Atlantic ( 49 % )Corporate SchemeGiven that the company deals in diversified concerns Singapore Airlines at its corporate degree follows the scheme of related variegation. A related variegation scheme is in which: â€Å" †¦ an administration operates in several concerns that are someway linked to one another † ( Ricky, W. Griffin 2007 ) Harmonizing to Ricky, W. Griffin there are three basic benefits of utilizing such a scheme which are: The administrations that use such a scheme do non depend on any one concern cut downing the fiscal menaces. They cut down the operating expenditures i.e. the costs are divided by the figure of concerns. There is a interactive attack of basking the strengths and capableness through a figure of concerns it operates in.AimHarmonizing to an article written by Jochen W, Loizos H, and Nitin P, the aims of Singapore Airlines were to: Supply a superior client satisfaction that will be consistent and moderately priced. A pleasant ROI to the stockholders and bring forthing equal net incomes to afford an ample support for investings. Develop the best Human Resources patterns that draw, grow, motivate and retain the work force which play a function in accomplishing the house ‘s aims. Maximise the capacity of operations and utilize all the available resources. With the above referred scheme and aims of Singapore Airlines through the attested beginnings it is clear that the house from it ‘s really founding has a construct of pull offing its ‘ employees ( cost effectivity ) in such a manner that it delivers and sustains an first-class service. Note: This subdivision is deliberately clean A CRITICAL EVALUATION OF HUMAN RESOURCES STRATEGIES IN CONTEXT TO SINGAPORE AIRLINES Knowing that Singapore Airlines has a corporate scheme that is related differentiated one and the aim of the house is to accomplish leading for in an first-class service which means the vision of the Singapore Airlines is to remain in front of the rivals. Now by this it besides evaluated that it is an air hose industry which is a service based industry. A logical impression to acquire from the aims set by Singapore Airlines is that it has to concentrate on utilizing the resources in such a manner that it turns out to be in excellence and the demand of best people with best public presentation through their accomplishments. In a scenario of such a sort this assignment takes a critical reappraisal of the schemes laid by the company with the aid of available literature on how can a steadfast do the best public presentation deploying and redeploying the human resources and the human resources schemes used by Singapore Airlines. These schemes can be extracted by the aid of the diagram given below which is followed by the account of each of the scheme.RECRUITMENT AND SELECTIONâ€Å" Furthermore, â€Å" the people recruited † in an endeavor or an organisation creates the concern civilization which can foreground endeavors ‘ places and do them different from rivals. † ( Vinet, N. 2010 ) The definition spring by Vinet draws an of import that the enlisting scheme should be done with the alliance of the coveted aim of an administration as it is the people in the administration who deal who represent the endeavor by making a civilization and that differentiates the administrations from the challengers. A research conducted by Jochen W, Loizos H, and Nitin P Singapore Airlines is the one which is much concern of this affair as they lay a thorough scheme in the enlisting procedure and a rigorous procedure of choosing the employees. The procedure of recruiting and choice of employees goes through the undermentioned phases as evaluated from the research: Baseline enlisting and Screening: at the really first measure from a scope of appliers the showing of the appliers is made on the bases of their age ranges, academic makings and physical properties. Interviews: the appliers which are successful in the showing are farther take three unit of ammunitions of interviews. Uniform test: the appliers after the interview phases have to travel through the test of their visual aspects in the uniform. Water trials: a assurance degree testing is done of the appliers ‘ i.e. they are made to leap in H2O from a tallness of three meters, this gives the position to the interviewer what the reaction of them will be if such a state of affairs comes up where they have to escort the riders in the H2O. Psychometric trial: the psychological trials are so behavior to judge the intelligence, attitudes, aptitudes and personalities of the appliers. After the enlisting is made the successful appliers are farther monitored on a six month test and so contracted for five old ages if successful. This procedure of selecting is a most rigorous procedure by which Singapore Airlines ensures that they recruit the people with right accomplishments attributes the company desires to hold to accomplish the set aims.Training AND DEVELOPMENTAn article Greg Procknow gives five of import grounds as to why preparation is necessary in an administration: Training contributes to the overall scheme. Ensures the quality out of the employees through the preparation and development. Guaranting the security and safety is kept among the employees every bit good as the clients Attracting the skilled people and retain the bing 1s. Non-financial wagess for the employees for illustration: publicities. Singapore Airlines has a good lucifer given above such that it does believe that preparation is pool that links itself with the employees. It does hold a good accent on the preparation on the employees concentrating on the point that being a service based administration the employees the merely means by which it can accomplish its strategic aims and stick to the corporate scheme. Therefore a research conducted by Jochen W, Loizos H, and Nitin P, Singapore Airlines group has seven preparation schools for the seven chief places of operations and service conveyance: Cabin crew Flight operations Commercial preparation Information engineering Security Airport services preparation and technology Further the preparation classs are conducted on a four and twenty nine months for the bing employees to assist them cognize and follow what the administration expects from them. Singapore Airlines follows holistic scheme in developing the human resources which is non merely concerned with the wellness and safety issues but besides on the functional issues and beauty attention, high-quality and alien nutrient and vino, art of conversation. The house has a Management Development Centre ( MDC ) besides offers general direction preparation under the horizon of the HR division.Service DELIVERY TEAMS[ MAXIMISING PERFORMANCE ]Harmonizing to Jochen W, Loizos H, and Nitin P, the accent is laid in order to pull out a high value of public presentation from the employees through public presentation assessments. Through the public presentation appraisals the company is doing the squads effectual in executing. The public presentation is evaluated and assured through the followers: The leaders or the company supervise the staff developments The Staff public presentations are evaluated and communicated to them through assessments. The staffs are supervised sporadically. Feedbacks are taken besides from the monitored. An improved monitoring is done establishing on the employees feedback. As a consequence of such a public presentation assessment Singapore Airlines are successful in accomplishing a high public presentation ensuing a to an effectual bringing squad.Choice STAFF CONTROL[ MAXIMISING CONTRIBUTION ]The staff control scheme is laid particularly with the frontline cabin crew such that the corporate scheme and the organizational ends are communicated to the staff. They are made clear that their function is they do non hold a vision of going the universe ‘s largest air hose but be a cost leader in the industry. Therefore, the quality is to maintained and is non optional, this ensured by guaranting they hire people with the same quality through a series of appraisals made in the enlisting procedure ( psychometric trials, H2O trials, tea party trial, etc. ) . The ultimate rivals to Singapore Airlines are Air France-KLM Group, British Airways and the Lufthansa Airlines. The quality of the staff and their services are controls in order to remain in front of these challengers in footings of cost leading.MOTIVATION AND REWARDTo anticipate the best out of the employee they have to be motivated through a wages system ( Makenan, I. 2008 ) . This should b vitamin E genuinely based on their public presentation which denotes ‘well done good occupation ‘ as every employee expects this from this grasp from the directors, leaders and the administration. Harmonizing to the article written by Jochen W, Loizos H, and Nitin P, Singapore Airlines uses both fiscal and non-financial wagess in order to the acknowledgment of the employees which can be seen below as follows: Non-financial wagess: Photographs and names of the good employees in the newssheets which is a signifier of acknowledgment. Annual Deputy Chairman ‘s Award Fiscal wagess: A important per centum of variable wage constituents linked to single staff parts and company ‘s fiscal public presentation. The above wagess used by Singapore Airlines works as a good factor to maximize the part and accomplishments of people who are selected exhaustively through the stiff enlisting and choice procedure. All the above schemes laid by the administration are successful 1s which help the administration to keep the corporate scheme and accomplish the corporate aims so far by cognizing it has been making good.Critical ASPECTS OF THE HUMAN RESOURCE STRATEGIES IN CONTEXT TO SINGAPORE AIRLINESRetention schemesAlthough the organistion is making really good in footings of pull offing the human resources and has been really effectual besides the house has made an effort to retain the accomplishments in the administration. An accent has besides made to make so as harmonizing to the research made by Jochen W, Loizos H, and Nitin P, shows that the administration maintains a direction development Centre which focuses on develops the employees and helps in retaining them by spliting the development programmes into 3 parts as: programmes the focal point on the varying precedences and required accomplishment at different managerial hierarchal phases ; Encouragement programmes to develop the managerial accomplishments ; Programs that focus in the countries of societal protocols and framing which in bend aid in self-development. But still the administration is holding a 10 % labour turnover every twelvemonth which may be due to the ground that the employees are non good motivated or recognised. The findings from the appraisal made on the footing of the assignment rubric gives a position point that the house has a keeping on the list and doing an indirect effort to prolong the work force, but at that place stands a demand for a direct keeping scheme which should be focused as the antonym can ensue in the followers: Excessively much cost of enrolling people as it is already traveling through a drawn-out procedure in the hunt of the right accomplishment. Excessively much of clip consumed besides in the enlisting and choice process. New staff takes clip or finds it hard to set in the civilization and environment. The skilled work force joins the rivals which is a winning point given to the challengers. In order to get the better of the people go forthing the administration a scope of schemes can be laid.Schemes to halt the labor turnoverImplementing of motive theory given by Fredrick Herzberg which divides people in the administration into two parts which given below in the theoretical account. Although the administration is actuating the employees through wagess but there should be a proper categorization of both the parties to stress on and development programs should be laid in conformity. Create communities among the employees which in bend build up a societal web. Peoples do non go forth the administration as go forthing the administration would be go forthing their webs. ( Torrington D. , Hall L. , Taylor S. 2005 ) Execution of grudge direction could besides cut down the resigning of employees as it makes them experience they have an option if they are non satisfied by their superior. Singapore Airlines should hold a process for placing such grudges. They can be identified by the followers:Beginning: Lecture notesExit interview, these are done with the employees who are go forthing the administration, and are helpful in retaining the employee by offerings and besides acquiring the feedbacks from them which can be incorporated in the administration. Gripe Boxs: these are the boxes in which the employees put their grudges and their critics to any superior. They differ from the suggestion boxes as the people do non stipulate who they are. Opinion Survey: A signifier of self rating of the grudges by the administration and a good manner to keep employee relationship and anticipate maximal part from the work force. Open-door Policy: A policy which is spoken of many times in an administration and is really less in action. This policy is the one where any employee or the director is free to near a superior to describe his or her grudge.KNOWLEDGE MANAGEMENTSingapore Airlines does non hold an accent on the construct of cognition sharing among the employees. A cognition that is seemed to be preserved within the people but should be among the people as sharing of cognition tends to heighten when the thoughts shared and this is done in a collaborative mode. ( Lecture resources ) Schemes to promote cognition sharing in an administration: The procedure can be divided into people itself with specific duty to make so. As shown in the diagram below: Beginning: Lecture notes. The cognition designers: Chief Knowledge Officer and affect, among other things, who emphasize on how the cognition can be shared and how people will be trained, how they will be rewarded for collaborative working. The cognition facilitators: consists of people who run processes to assist knowledge flow, for illustration company journalists who write up client instance surveies and undertaking reappraisals ; bibliothecs who develop the storage and retrieval of information ; information service suppliers who provide an internal consultancy service to happen and present information to staff ; webmasters who develop the company intranet. The cognition cognizant: Consists of employees, who have a duty in sharing their expertness and cognition and take part in value of coaction. CONCLUSION AND RECOMMENDATION The research in this assignment was made on Singapore Airlines as it is a service based administration and trades in a service industry and the human resource factor is much more critical here as they represent the organistion. It is their service which derives the competitory advantage for the administration. Singapore Airlines Emphasize on a double scheme i.e. cost leading and distinction. The human resources scheme has been good aligned so far to prolong the competitory advantage as the research shows that Singapore is non a budgetary air hose but still is offering the monetary value of a budgetary air hose. As this appraisal is based on the research made on the diary The Role of Human Resources in Achieving Service Excellence and Cost Effectiveness at Singapore Airlines by Jochen Wirtz, Loizos Heracleous and Nitin Pangarkar in 2007, the diary reveals five schemes laid by Singapore air hoses in order to aline the human resources scheme to the corporate scheme and aims through maximization of accomplishments and part of the people. At the terminal of the rating and the amplification of these schemes a point of view was clear that the administration although has a stiff and rigorous process of recruiting and choosing the people but which evidently for no uncertainty has to be so drawn-out and besides dearly-won. This factor could be reduced by cut downing the labor turnover. They necessity is due to a ground that when the economic system is down the turnover is what it is at the minute ( 10 % ) , but if the economic system is on the extremum this per centum can besides travel at the extremum. Therefore the administration should be concentrating on two chief factors given already recommended in the above subdivision that is: Retention scheme to prolong the accomplishment in the organistion and cognize why they leave the company. ( Torrington D. , Hall L. , Taylor S. 2005 ) Build or make cognition sharing environment in the company so that even if the people leave the administration at that place silent accomplishment remains expressed. The ground is that new staff take clip to set in the civilization and to be trained to give the same public presentation of the former employees

Literary Analysis of Sholom Aleichem and IL Peretz essays

Literary Analysis of Sholom Aleichem and IL Peretz essays Reading the writings of Aleichem and Peretz was a pure pleasure. It was like walking in the wood decorated with all kinds of flowers blooming. Although the roads Aleichem and Peretz took were bit different, they both attempted to describe the beauty of the Jewish culture and the hidden treasures which it offers to the world. One would wonder how, in the world, can there be a humor in the midst of horrible suffering? Well, get ready to surprise. Jewish culture without a humor is like a computer without a mouse. In another word, you can understand all the functions of computer with keyboard only, but it gets a lot easier if you have a mouse to with you. Understanding Jewish humors would help us what Jewish people think and feel of a world around them. The writings of Sholom Aleichem are good examples of the value of humor in revealing the heart of the Jewish culture. In Hodel, the conversation between Tevye and his wife reveals the value of Jewish people regarding the tradition. It also shows the role of a woman in a funny way. "What do I care about a medresh?" she says. "We have a daughter to marry off. And after her are two more almost ready. And after these two-three more-may the Evil Eye spare them!" "Tut," I say. "What's that? Don't you know, Golde, that our sages have thought of that also? There is a medresh for that, too. . . " But she doesn't let me finish. "Daughters to be married off," she says, "are a stiff medresh in themselves." so try to explain something to a woman! The story about the matchmaker, Menachem Mendel is also funny yet revealing very important feature of Jewish culture, an arranged marriage. I think Sholom Aleichem's humorous conversational style of writing can be compared as a sponge. His writing is so easy to understand and definitely funny. The readers would agree with Menachem Mendel when he says, "Laugh, laugh. . . You have the right to laugh!" However, if...

Special Education Supports and Services

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What Is Meant By Market Failure And How Can Government Attempt To Essay

What Is Meant By Market Failure And How Can Government Attempt To Correct It - Essay Example In economics, a market failure takes place when â€Å"the production or use of goods and services by the market is not efficient†. In other words, market failure occurs when free market fail to provide optimum allotment of resources, either over-allocating, or under-allocating their resources, which results in economic inefficiency In other words, market failure occurs when free market fail to provide optimum allotment of resources, either over-allocating, or under-allocating their resources, which results in economic inefficiency (Francis, n.d). In such a case, there exists another possible outcome where the market participants’ gains would compensate their losses. Market failure is a serious issue as in consequence it disrupts social and economic region of a particular region or even the whole country. Thus, it is a challenge for governments to interfere and ensure that there is no risk of market failure. There are several ways in which governments can correct the sta te of markets: by public section production, regulations and antitrust legislation, taxation and subsidies (Francis, n.d). This paper discusses different kinds of market failure and the ways in which government can attempt to correct them. There are several general categories of market failure: market power, externalities, public goods, and equity. Market power is the ability of a company to influence the market price of a good or service, raising prices above competitive levels (Francis, n.d, ICT regulation toolkit, n.d). A company with market power can raise prices without losing a significant portion of its business to other companies. The rise in the prices above competitive levels may affect negatively the market as it results in diminished customer demand, efficiency loses, and harm on the public interest. Furthermore, companies with significant market power may abuse their power, using their leading position to reduce competition. Some common forms of anticompetitive conduct involve abuse of dominance, cross-subsidization, and misuse of information (Market Power, n.d). There are several ways in which governments can deal with abuse of significant market power. To start with, all national regulatory authorities (NRA) have to make an assessment of the state of completion in specific markets and consider whether such competitive behavior harms another companies and customers (European Regulators Group, 2007). In such a case, the dominant company may be required to stop its abusive behavior or make specific changes to its policy so that it would not be damaging to competition anymore (Remedies for Abuse of Dominance, n.d). This remedy requires the authorities to monitor the company continuously to guarantee that the behavioral change is maintained. Another possible solution is fining the company or its employers with direct responsibility for anticompetitive behavior. The firm can also be ordered to pay compensation to its customers and competitors who have been harmed by their policies. The European Regulators Group (2007) proposes functional separation in markets where non-discrimination procedures were ineffective in dealing with problems of abusive market power. Functional separation may involve breaking the company into two different firms with separate market shares, or separating competitive and monopoly products and services of the company. This solution may also include such elements as separation of operational support systems, brands, employees, and information management systems among new, individual business units. When deciding on the degree of the separation proposed, the NRA’s have to take into account the cost and benefits of this solution and base their decision on completed market reviews (The European Regulators Group, 2007). Cross-subsidization occurs when companies with market power charge a high price for their non-competitive products services and use different proceeds to subsidize low prices for compet itive goods. In such a case, governments can implement and enforce a price floor for the low-cost products in order to ensure that the revenue that is generated by the product

Psychology Assignment Example | Topics and Well Written Essays - 500 words - 1

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Project management coursework Example | Topics and Well Written Essays - 1500 words

Project management - Coursework Example Rate of performance is portion of work (in percentage) that is actually complete as compared to the work schedule to be achieved (Meredith and Mantel, 2008). It is assumed that 50% of the work is completed at the end of 5 years in 2011 since no information is available. The report is an analysis of the key causes of failure of the national program for Information Technology project undertaken by the UK government so as to unify patient records over the digital platform countrywide. The cause have been analysed based on theories in importance of project governance and leadership in successful project implementation. It was found that lack of objective and goal definition, proper leadership communication and proper guidance on importance of data security and need for communicating with doctors were key causes behind failure of the national project. Project governance assists in ensuring that the project is being executed as per standards set by the organization, which is using the project. Such governance assures that all activities are executed as per the required standards and ethical compliances are maintained while creating provision for accountability of the project management team. The project manager uses project governance to develop a proper reporting system under the structure of governance and such structures also define the roles and responsibilities of each project team member. The project manager can also utilize the governance structure for priority setting within project objectives. Project leadership, on the other hand, refers to the emphasis of project managers on planning, devising processes, developing structures and solving problems. The project manager is responsible for planning out projects, measuring performances and resolving conflicts and roadblocks that hamper project progress. Project leadership involves visioning, communication, strategizing, empowering, listening, questioning

Explain Intra Industry Trade Economics Essay

Explain Intra Industry Trade Economics Essay The basic definition of international trade is the exchange of items or commodities between countries without considering the nation boundary. The country is able to export a product when the product industry has grown completely and the production is far more than the demand of the home country. Import activity is done by purchasing certain product from other country to meet the demand of the nation about certain product. Economies of scale determine the import and export activity. Trading is the cause for organizations to focus on cost efficiency. Another point of view for organizations to think about trade is it expands the industry boundary without any limit. The industry can expand its business activity and the output to export. If an organization is producing a product in large quantity, there is a phenomenon that its cost will reduce and it is call economies of scale. 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The external economies of scale mean the cost efficiency due to the involvement of third party in term of technical or commercial support. In this case, the firm takes the services like training of the labour, technological help and all factors which can reduce the cost. In this case the economies of scale are internal for the industry and external for the firm. The important thing about economies of scale is that the countries with little differences in term of resources and technology are gaining the efficiency and becoming the part of intra-trade industry. As, world is a global village, the economies of scale explain the phenomenon of intra- industry trade in which countries are trading almost similar products with minor differentiation with each other. Economies of scale mean production in large quantity. If a country produces a certain product in large quantity it can lower the cost as the cost of the product is divided into two parts, variable and fixed cost. The greater the firms production capability, the larger the economies of scale and intra-industry trade. International trade theory explains the pattern for international trading between the countries around the globe. Intra-industry trade is more suitable for monopolistic competition than oligopoly. In monopolistic competition there is only one major player of the industry who holds the share of the market and price of the product. In monopolistic competition the firm produces in a large quantity which reduces the cost of the product. And in oligopoly many players have the share of the industry and price control power. According to Ohlin theory of trade, the trading between the countries is due to the lack of resources. The countries trade to utilize the resources and fulfil the need of the resources, because none of the country has enormous resources. The countries have to fulfil the demand of the resources and for that they need to import it from another country. The modern trade theory revolves around three factors which are technology, competitive structure, and scale of production (Robert, 2010). Competitive structure is related to the competitive advantage over the competitors in term of resources. These resources can be technical, cost efficiency or the product differentiation. The drivers of the economy are technology and economies of scale. Now days technology is playing the most important role in the economy as the cost efficient and effective of the factors of production depends on it. Technology is the factor which can either make the unit cost so high or the unit cost can be a minimum. Heckscher-Ohlin model of trade revolve around the economies of scale as the as it is the most important factor considered for trading. As, international trade theory explains the benefits of trading activities in any shape of resources (Robert, 2010). The basic benefit for internationally trading is to provide the nations a better living standard with lower price. Ohlin theory focused more on the economies of scale as trading, competitive edge depends on the cost of the product. Technology can be helpful in lowering the cost but economies of scale helps the firms not only expand their resources and capacity but also produce in large quantity which will lower the fixed cost of the production. In the nut shell economies of scale tends to increase the chance of the trading, as the purpose of trading is to provide better living standards to nations. Ohlin theory of trade focused on the 3 factors technology, competitive structure, and scale of production. Economies of scale are the most effective tool in term of lowering the cost of the product. Explain how intra- industry trade might be expanded via formation of regional trading agreements and custom unions. Are these international trading arrangements always trade creating? Trading is considered to be the most effective way to share the resources in term of commodities among countries. Economists have given a new concept to the world, as a global village. Economist believes that with this concept the world will utilize the resources in a standard way, and the living standard of the people will be same as there will be no hurdle for trading. The term intra-industry trade is used for international trading in which the countries import and export similar commodities with each other. This trading is done on the basis of cost efficiency, and the expertise of the resources. According to the new concept of trade, every country should focus on the resources it has and should get an edge over its competitors in the utilization of that resource. In intra- industry trade, regional trading agreements and custom unions are playing a vital role. There are two types of countries in the world, developed countries and under developed countries. In the new concept of the world trading, the developed countries will share the resources and their expertise with under develop countries to provide the same kind of living standards to the whole world. The trade agreements is been done in between different countries in order to expand the import and export. These agreements mainly focused on the conditions of trading between the countries. As, the trading should be balanced in between the countries, none of the country can only import goods or none of the country can only export goods. The trading should be in equilibrium. The trading agreements are reducing the national and political boundaries among countries. There are various types of regional agreements which have different kind of commitments from the participating countries. The Free Trade Areas (FTA) in which the members countries reduce the trade barriers among themselves in order to protect specific sector from the competition from the non members countries. In Custom Unions (CU) the participating countries agree on a common trade regime and also trading with non member countries on external tariff. European Union (EU) is the most committed trade agreement. These agreements have bigger advantages on the economies of the countries. In the nut shell these agreements and unions are helping the firms with the legal obligations and tax systems. While governments do these agreements, new policy of trade between the participants is been made to increase the trade and remove the barriers. With reference to the theory of optimum currency area, critically examine the  conditions for successful adaptation of a single currency by a custom union to enhance trade. Combine monitoring policy has become an important factor in the global economic era. Economists have made the world a global village and want to have single currency in the globe. In economics, optimum currency area theory focused on the sharing of currency among several countries in order to maximize the economic efficiency. It is also known as the optimal currency region without considering geographical boundaries. This theory explains the optimal features for combining several currencies or creating a new currency for performing economic activities. In optimum currency area theory the sovereign countries adopt a single currency for permanently combining their exchange rates. The single currency can fluctuate only in the union for performing economic activities and the trading with the participant countries can only be done with the merged currency. There are four main levels of the optimum currency area theory. In the first, Pioneering Phase the properties of OCA theory is been debated. The mainly discussions was on the exchange rates, financial markets, inflation and factors of production. The initial debate was to initiate the boarder of the currency and the resulting cost and benefits. In the second phase, reconciliation phase the properties of OCA is been analysed and it result in the drawbacks of some of the properties and new insight properties of OCA theory. These two phases result in analyzing the problem and inconsistency of exchange rates. However, theoretical and empirical evidences lead the concept from monitory union to cost and benefits which result in currency union. The new policies is been started to generate and many OCA properties were uniformed. These problems been coped up the in the third phase which is reassessment phase, which bought a new concept of one currency, one market. In the last phase empirical evidence in which the theoretical and empirical evidences is been examined. All OCA properties are re-evaluated to discover how their interpretation has transformed. European Union initiated Euro as one median of exchange in European countries. The trading with EU can only be done in Euro which has increased the usefulness of currency as one medium of exchange. The price discrimination, market segmentation will also decrease and it will increase the competition due to one currency and one market. OCA helps in the reduction of nominal exchange rate. EU depends on one currency which means if any of the country suffers a budget deficit it will impact the whole EU. This impact will not only strain on the interest rate but also the world confidence on one currency. In the nut shell, OCA theory applies on the world new concept of one global village. In which geographical boundaries have no importance. EU manages to trade through Euro as one currency and once market. Use recent EuroStat data to examine the extent and the pattern of intra-industry trade within the Eurozone trading area. What are the implications of your analysis for trade creation within this trading zone? Trade statistics helps both public and private users in shape of basic instrument for trade. The statistics helps the authorities to change their trade policy and improve competition as Eurostat data is the source of information about trade. After the new concept of world as a global village and sever as one market, Eurostat becomes the main source for data collection from the non EU member and EU members and a new system for data collection been introduced as INTRASTAT. Statistics on external trade and intra-EU trade are compiled on the basis of Community regulations. The tables used below are all taken from Eurostat. Trading has two ways, one is import and one is export. The definition of Import in terms of EU is the commodity or good which enters in to the statistical territory of EU from third world country. Export is defining as the good or commodity leave the statistical territory of EU. According to the Eurostat data the EU trading share to the world in term of exports is higher than any other union or country in 2010. The share of EU is 16 % in terms of export and 17.3% in shape of imports which means EU plays a vital role in the world inta-industry trade. The trade balance of Eurozone trading area is negative as the imports are higher than exports. The calculation of IIT indices can be done by several ways. It can be done by country to country and it can also be done by regions and unions. The formula is based facts and figure about the import and export of the country. The data is available on the official website of Eurostat. All the participant countries and non participant countries have to submit their trading data on Eurostat website on the basis of standard provided by UN. The data is available to the public for external trade and Intra-European Union trade statistics, as the private and public sectors analyse the opportunities thorough it. The information provided on EU on Eurostat in enough to calculate indices. The indices are determined as the price indicator. Indices can be calculated product wise, country wife and region wise. Here are some examples of Indices. import Export Y X Y X X-Y X+Y EU 1,509.10 1,349.20 0.173183 0.159873 -0.01331 0.333056 US 1456.5 944 0.167147 0.111859 -0.05529 0.279006 China 964.2 1168.3 0.110651 0.138437 0.027786 0.249088 Japan 506.1 541.1 0.05808 0.064117 0.006038 0.122197 South Korea 310.5 340.6 0.035633 0.040359 0.004727 0.075992 Canada 321.4 291.1 0.036884 0.034494 -0.00239 0.071377 Hong kong 305.2 287.8 0.035025 0.034103 -0.00092 0.069127 Singapore 220.5 256.1 0.025304 0.030346 0.005042 0.055651 Mexico 245.5 224.9 0.028173 0.026649 -0.00152 0.054823 Russia 162.8 280.5 0.018683 0.033238 0.014555 0.051921 India 245.4 166.6 0.028162 0.019741 -0.00842 0.047903 Australia 157.5 153.8 0.018075 0.018224 0.00015 0.036299 -0.02356 1.44644 world 8,713.90 8,439.20 World INDEX -0.01629 The table of indices shows that the above mentioned countries are importing more items than they are exporting. If the export and import are equal the index value is 1. If it`s less than zero it means that the imports of the country is exceeding over the exports. The trade balance is compulsory as it the country is focused on importing the commodities than the country is destroying its economy. And its the same as in case of exports. The table below shows the indices per month and year for EU countries. In the same way Indices can be calculated on the basis of product, consumption and even buying manners. 2011M11   2011M12   2012M01   2012M02   2012M03   2012M04   2012M05   2012M06   2012M07   2012M08   2012M09   2012M10   One year Euro area (17 countries) -0.00891 0.00118 -0.00569 -0.01575 -0.00609033 -0.00452 0.000926 0.009519 0.002299 0.006505 0.015043 0.005026 -0.00047 Euro area (16 countries) -0.05322 -0.04283 -0.04994 -0.06064 -0.04955932 -0.04896 -0.04316 -0.03445 -0.04153 -0.03844 -0.02882 #DIV/0! -0.49156 EU (27 countries) -0.05288 -0.03875 -0.05201 -0.06928 -0.05291319 -0.05992 -0.04488 -0.04039 -0.04436 -0.0481 -0.04665 -0.05649 -0.60664 The calculations show that the EU countries are importing more items and exporting less. In this analysis many internal factors involve like factors of production in EU countries are much higher than other countries of the world. However, if in the case that even all of the exports are increasing in different sectors than increase in imports, it is possible than IIT will increase. Is Eurozone an optimal currency area? Provide a critical assessment of this issue using   key theoretical and empirical indicators including your analysis of the extent and the pattern of intra-industry trade within the Eurozone trading area in part (b), and an analysis of the extent of labour mobility in the Euro-zone trading area. Eurozone is optimal currency area as EU has initiated Euro as one medium o exchange. The concept of OCA theory is to share the currency or create a new combine currency which will be used by the participant countries as medium of exchange. European Union initiated Euro as one median of exchange in European countries. The trading with EU can only be done in Euro which has increased the usefulness of currency as one medium of exchange. It will bring the equality in term of paper money and markets. Competition will be more intense as the firms are not only competing with local manufacturers but also with international players. EU is been made for the purpose of intra-industry trade, as to combine the benefits of several countries and drivers of the economies. Regional trading agreements and custom unions are playing a vital role in international trade. There are two types of countries in the world, developed countries and under developed countries. In the new concept of the world tradin g, the developed countries will share the resources and their expertise with under develop countries to provide the same kind of living standards to the whole world. The trade agreements is been done in between different countries in order to expand the import and export. These agreements mainly focused on the conditions of trading between the countries. The competitive advantage theory of trade suggests the countries that every single country should focused on the competitive edge they can get from other competitors. They should only focused on their resources and their expertise rather than working in several industries without expertise. EU agreements help the participants in term of resources as well. There are no restrictions for the labour of EU countries to limits their services to home country. As, the new concept one currency, one market means the sharing of resources as well. The nominal unit of labour cost is the ratio total reimbursement of workforce with the number of persons employed. When there is a decrease in the Nominal unit it means that the unemployed number of labour is increasing. To control on EU participant countries nominal unit labour cost, it was decided to share the labour skills with all participant countries in order to get an advantage over non participant countries. There will be exchange programs on the government levels and training programs for the labour to train them well. The NULC is calculated by the formula: (total D1 in national currency / total employees in persons) / (GDP in market prices in CLV05 in national currency / total employment in persons) The nominal Unit labour cost of EU countries is given below: 2009   2010   2011   2012   2013   Belgium 8.8   10.8   8.0   6.3   5.8f   7.3f   Bulgaria 26.7   38.5   33.9   20.3   9.6f   6.9f   Czech Republic 6.5   8.4   5.7   3.3   1.3f   2.8f   Denmark 13.6   17.7   11.0   4.7   0.2f   1.6f   Germany -0.6   7.2   6.8   5.9   3.3f   6.0f   Estonia 46.7   36.2   9.1   -6.2   -2.0f   6.6f   Ireland 14.8   6.7   -4.1   -12.8   -9.5f   -3.9f   Greece 6.6p   14.5p   11.5p   4.1p   -12.3f   -12.1f   Spain 13.4   11.4   4.9   -2.1   -6.1f   -4.7f   France 6.8   8.8   7.7   6.0   4.4f   4.9f   Italy 8.3   10.5   8.1   4.4   2.3f   3.7f   Cyprus 4.0   7.0   7.2   8.8   -0.8f   0.4f   Latvia 79.4b   42.0b   -0.3b   -15.0b   -7.7f   2.2f   Lithuania 29.6   15.9   1.2   -8.4   -7.2f   0.4f   Luxembourg 12.5   19.3   19.2   12.5   9.3f   10.1f   Hungary 13.1   14.0   6.4   3.7   5.5f   12.6f   Malta 8.3   11.0   9.4   7.8   1.5f   3.6f   Netherlands 5.4   10.2   7.6   5.8   2.7f   4.4f   Austria 6.1   10.2   8.9   5.9   4.1f   5.1f   Poland 9.2   12.8   11.3   4.3   5.3f   7.0f   Portugal 5.6   8.0   5.1p   1.3p   -5.3f   -4.4f   Romania 48.6   45.7   36.5   12.7   12.2f   6.5f   Slovenia 10.3   18.4   15.9   8.3   1.0f   0.0f   Slovakia 6.7   10.9   9.4   4.4   -0.9f   0.7f   Finland 7.7   16.9   14.4   9.1   2.5f   5.8f   Sweden 6.9   12.1   5.1   1.4   -0.1f   3.3f   United Kingdom 8.5   11.1   10.0   8.1   5.3f   5.5f