Category: Economics 2707

Introduction

Private ownership rights are typically upheld and protected in Chile, and people are free to invest in the nation. Expropriation is unusual because protected rights in capital assets are frequently recognized and executed. The judiciary is free from political intervention and has a good track record of upholding individual rights, including those related to property and contracts. The nations well-developed free market generates a high per capita income. Regarding competitiveness, revenue per capita, industrialization, free markets, and perceived levels of corruption, the country is ahead of the rest of many nations in South America. The 2020 COVID-19 pandemic largely impacted the economy of Chile, but the nation has properly recovered, becoming one of the most economically stable nations in South America.

Discussion

Chile has experienced increased stability in its economy in recent years. The nations GDP rose by about 12% in 2021, making it one of the worlds quickest recoveries, largely contributed to by the governments proactive stance (World Bank, 2022). Aside from pension fund outflows and direct government assistance of 9% of GDP, consumer spending was the primary driver of expansion (World Bank, 2022). A rapid return to normalcy in economic activity was contributed partly to a COVID-19 vaccination rate that ranked among the highest in the world.

The nation has a better economic performance as compared with its neighboring nations. With a rating of about 75 on economic freedom in 2022, Chiles economy is the 20th greatest country in the world (The Heritage Foundation, 2019). It ranks second among the over 30 nations of the Americas, and its total score is higher than that of the region and the globe (The Heritage Foundation, 2019). There were over 38,000 fatalities in Chile due to the COVID-19 pandemic as of December 2021 (The Heritage Foundation, 2019). Due to the COVID-19 epidemic, the GDP fell by approximately 6% percent in 2020 but quickly rebounded the following year (The Heritage Foundation, 2019). The nation is the global leader in copper production, and the countrys economy is booming because of exports of minerals, fruit, fish, timber, and wine.

Despite the economic stability in Chile, the work market in the nation has had slower growth. The labor markets recovery has been relatively slower, with just 60% of the employment lost in 2020 recovered in 2021 and many formerly employed women still not participating in the labor force (World Bank, 2022). The significant demand constraints, product price rises, and supply shortages all contributed to the acceleration of inflation in February 2022, reaching approximately 8% (World Bank, 2022). Public debt hit approximately 40% of GDP, the most in three decades, despite the extensive use of government savings accounts (World Bank, 2022). These export ratings make Chile one of the best nations investors can choose.

Chiles economic prosperity makes it one of the largest exporters in South America. In 2021, the nation sent approximately $90 billion in items to other parts of the world (Workman, 2022). There was an approximately 36% rise from 2017 to 2021, and an approximately 35% increase from 2020 to 2021, resulting in that total amount (Workman, 2022). In 2021, South Korea, the United States, Japan, China, and Brazil made up a diverse group of Chiles top five trade partners (Workman, 2022). This group of major buyers accounted for over 70% of the countrys export value. When seen through the prism of individual continents, Asia received approximately 60% of Chiles export value, while North America received about 20% (Workman, 2022). Before its shipment to Europe, Chile exported about 10% of its commodities to Latin America, except for a few countries (Workman, 2022). These earnings from exports indicate Chiles economic stability in recent years.

Despite the economic growth in Chile, some predictions show that the nation could face some economic challenges. Weaker investment is predicted because of harsher economic circumstances and continuing political instability. Real GDP expansion is forecast to slow to about 2% in 2022 due to the withdrawal of police assistance (World Bank, 2022). The decline in consumer spending is projected to be somewhat mitigated by still-high household liquidity and the improved universal pension plan. Further out, eliminating direct social payments, stricter financial conditions, a deteriorating capital market, and chronic uncertainty would all contribute to sluggish development until 2024 (World Bank, 2022). The nation needs to work on these restrictions to maintain its economic prosperity.

Conclusion

In conclusion, Chiles economy has become more stable in recent years. The high per capita income is largely attributable to the countrys robust free market, making it a top destination for foreign direct investment. In 2021, the countrys GDP increased, making it one of the fastest-recovering economies in the world after the COVID-19 epidemic. With such high export rankings and profits, Chile is a top option for foreign investors. The countrys economy is one of the worlds top 20. Despite the countrys relative prosperity, Chiles job market has grown more slowly than the economy overall. Nonetheless, despite favorable economic conditions, several variables might stunt Chiles economic development in the years ahead, and the government should strive to reduce these problems.

References

The Heritage Foundation. (2019). Chile economy: Population, GDP, inflation, business, trade, FDI, corruption. Index of Economic Freedom. Web.

Workman, D. (2022). Chiles top trading partners 2020. Worlds Top Exports. Web.

World Bank. (2022). Overview. Web.

The activity of public organizations is a complex process with its characteristics and factors of influence. This process involves many organizations, stakeholders, competitors, and collaborators. All this works as one integral mechanism to influence the political actions of any politician or party. Such influence can be exercised in many ways, including lobbying, bribery, public advocacy, and attempts to discredit opponents. Because of such political processes, it is rarely possible to form an ideal policy.

In most cases, state and public decisions are based on a series of compromises and concessions in specific areas that may concern different state sectors. An important consideration is to consider how politically feasible the project is. There are many forces to which it will be beneficial and the same number who would like the project not to exist. All this is important to consider when implementing plans. A helpful step would be to create a stakeholder matrix to outline how and who will influence the project.

Demands and Changes that Affect the Target Project

The target project is influenced by many factors, both political and social. First of all, the project of a non-profit organization that will work to ensure gender equality and protects womens rights is influenced by political and other activists. This influence can be both positive and negative, depending on the views on the problem of a particular group of people. Because the project has a clear goal to be achieved, it requires significant public resources and the involvement of many people. Because of this, the preparation of the project receives a certain degree of publicity, which can attract the attention of various interested parties to it. According to Treinta et al. (2020), in non-profit organizations, trust and legitimacy in the relationship between the organization and stakeholders are essential factors. In addition, one of the main requirements for the successful implementation of the project is the promotion and approval of its actors in society and politics. This means that a competent information campaign should be carried out that will increase peoples awareness about the problems of women that persist in society. A targeted project that aims to create an organization to protect womens rights can attract the attention of various stakeholders. Firstly, it can be other public organizations that can support the project and positively influence its development. However, some activists also would prefer something other than such a project implemented.

Related Processes

The implementation of the project will require the creation of new autonomous processes and the achievement of support for them by political elites. Such processes are due to the fact that different interest groups can turn their attention to the newly created project and want to show their participation in it. Thus, they influence it according to their intentions, which can either positively affect the project or aggravate its progress. The international social project for protecting womens rights significantly impacts feminist movements worldwide. It, therefore, is in the area of interest of feminist organizations that can significantly increase the effectiveness of its processes.

One of the boundary processes of the project is domestic violence. This is one of the most common, complicated, and traumatic situations in life, the consequences of which can be dire for individuals and society. In the field of family law, the separation of mother and children has become common in divorce cases. The international community recognizes violence against women and children as both a violation of human rights and an act of discrimination. In cases where mothers are forbidden to see their children, the fragile psyche of children receives severe psychological trauma, the consequences of which will forever leave their mark. Mothers also experience psychological difficulties that aggravate their already difficult situation, especially single women, widows, and women who have been subjected to various kinds of discrimination, as a rule, are in a state of stress and depression, which may be victims of involvement in various illegal actions. Such processes should be followed by implementing this project concerning all groups of women subjected to discrimination and humiliation.

Possible Results

There are many options for the potential outcomes of the project. They may depend on a variety of factors described in this paper. The ideal outcome of the process would be expanding the groups activities to as many countries as possible and positive feedback from women about the organizations activities. This is the effect the project organizers strive for and which would be the most desirable.

However, as described below, unforeseen difficulties of various scales may arise along the way of project implementation. This can affect the final results and make them compromised or undesirable. The situation can be corrected in the first case since compromised results would mean either low project efficiency or a small distribution. In this case, it would be worthwhile to continue the organizations development to protect womens rights in all accessible regions. The results would be undesirable if the project did not succeed or its activities did not help women assert their rights. In this case, the organization will need a complete reorganization, which may lead to its re-creation from the beginning.

Feedback Process

Feedback is a crucial indicator of the success of any project. However, in social protection, receiving feedback on the work of the organization plays a crucial role in building trust in the project and its activities. Thus, feedback is the basis of self-regulation, the development of systems, and their adaptation to changing conditions of existence. This connection at the level of a non-profit organization is a mechanism for ensuring the functioning of stakeholders who directly benefit from the implementation of the project. Since the organization of a large-scale social project is a complex, open system, therefore, at the level of the beneficiary, both negative and positive links should be identified.

Given that feedback is considered one of the essential concepts of management theory, it follows that the development of program-target methods based on feedback from the control object can significantly increase the level of coordination and flexibility of program management. In addition, the construction of competent social interactions can provide grounds for the application of new planning and management methods, particularly indicative planning.

Social Influence Values

The value system is a set of opinions that have developed among people about the significance in their lives of things and phenomena found in nature and society. A person and society rely on a system of values when choosing goals and ways to achieve them when it comes to solving emerging problems. Values are reflected in the norms and attitudes that operate in society. For example, the legal norms of a legal, democratic state differ from the norms and attitudes that reign in despotism or satrapy, just as democratic values differ from authoritarian ones.

Thus, in every society, there is a wide range of values, each of which, in its way, affects any social actors within society. This can adjust and give different meanings to public projects depending on their direction. The values of different groups of women, such as the disabled, can influence the project of creating a womens rights organization. In this way, each persons values can be considered when working on a project so that it meets its goals in the future. The reasonable opinions of the majority and minority of people on a given issue may vary depending on various factors such as their gender, social class, and political views.

Political Issues

The US administrations policy towards feminism is entirely consistent and liberal. Women and their rights are protected by federal law with a difference in pensions and health care. Even though discrimination on any grounds is officially prohibited, it persists in areas such as employment. This can be seen in the fact that women generally receive lower wages than men for equivalent work (Säve-Söderbergh, 2019). This indicates that women remain at a certain level of insecurity in society. The project aims to eliminate such manifestations of infringement of rights.

Regarding local governments, all states have the same liberal rights for women without discrimination. However, according to the Southern Poverty Law Center (2022), California is the leader in the number of right-wing hate groups. This could potentially harm the spread of organizational activity in this state. As a result, creating a womens rights organization may face public hindrance in the form of undermining activities and attempts to prevent equality.

References

Säve-Söderbergh, J. (2019). Gender gaps in salary negotiations: Salary requests and starting salaries in the field. Journal of Economic Behavior & Organization, 161, 35-51. Web.

Southern Poverty Law Center. (2022). In 2021, we tracked 733 hate groups across the U.S. Web.

Treinta, F. T., Moura, L. F., Almeida Prado Cestari, J. M., Pinheiro de Lima, E., Deschamps, F., Gouvea da Costa, S. E., Van Aken, E. M., Munik, J. & Leite, L. R. (2020). Design and implementation factors for performance measurement in non-profit organizations: A literature review. Frontiers in Psychology, 11, 1799. Web.

The vast majority of cargo in Europe is transported by land. Roads are used to move about 70% of all goods transported on land (Wiegmans ET AL., 2018). Over the past few years, there has been an increase in the variety and volume of goods shipped to and from Europe, necessitating a greater variety of modes of transportation for these goods to be transported in bulk. Roads carry more than 75% of the freight in Europe, while rail only accepts about 18% of it (Islam, 2018). Domestically and internationally, the freight traffic on European roads has significantly increased.

In recent years, the amount of cargo that airports move has slightly increased. On the other hand, maritime ports process about 3,739,000,000 metric tons of cargo each year (Wiegmans et al., 2018). The movement of goods within Europe is controlled by inland waterways, while seaports are necessary for international carriers. The vast majority of the freight moved in Europe, or about 3.5 million tons, is transported by rail (Wiegmans et al., 2018). Exporting goods across Europe has been significantly facilitated by developing short-haul cross-border freight alliances among European nations.

Twenty-eight European countries collaborate in political, ecological, and economic matters, forming the European Union. The EU is responsible for developing rules and regulations that authenticate competition for competent internal market operations. The United States and Canada dominate North America and connect with Europe to solidify their political, economic, and environmental ties, which transatlantic associations greatly reflect. A primary constituent of trade is logistics, also known as transport systems. Freight business refers to transporting trade goods over air, land, and waterways for a long distance with the aim of international trade. There is a conscious difference between transport systems in Europe and North America based on policies, regulations, and political aspects.

National governments and the European Unions policies and decisions significantly impact European trade. The governments of each European country collaborate with the European Commission to develop and implement their cross-border trade policies (Islam, 2018). European countries import and export to countries inside and outside the European Union and do business on a regional and international scale. Seaports handle the majority of freight transport, with airports taking only a tiny portion of the total.

However, there are some significant differences between European and North American freight transport. Unlike in Europe, the United States, Mexico, and Canada all have extensive rail networks, making rail travel a viable option for traveling throughout North America. Because of North Americas comprehensive road system, most cargo is shipped this way. Trucks have become the most popular mode of transport for moving goods across borders, domestically and internationally, in recent years. In contrast to Europe, North America has river-based waterways rather than inland seas or lakes. Inland waterways are not exactly clogged with freight, but a significant amount of cargo is moved that way (Lozzi et al., 2018). Numerous seaports on the North American continent serve as international cargo shipping hubs. Most shipment traveling to and from Europe, Asia, and Africa transits through US seaports. Because North American airlines were not designed to transport freight, very little cargo has been recorded as being transported by air.

Contrary to Europe, where a regulatory body develops trade policies, trade within North America is primarily influenced by national government policies and intergovernmental agreements. The policies of the various countries involved govern freight transportation across international borders.

Seaports are growing to accommodate containers due to an increase in maritime transport caused by the demand for raw materials in Europe and North America (Lozzi et al., 2018). More pipelines are being built in response to rising oil consumption to transport the substance from one place to another with the most negligible environmental impact and at the lowest cost per unit of cargo moved. Cargo handling by airlines is also expanding quickly, which helps the industry as a whole. The trend of cargo moving away from more traditional forms of transportation and toward more contemporary ones like air travel will need to be closely monitored.

References

Islam, D. M. Z. (2018). Prospects for European sustainable rail freight transport during economic austerity. Benchmarking: An International Journal. Web.

Lozzi, G., Gatta, V., & Marcucci, E. (2018). European urban freight transport policies and research funding: are priorities and H2020 calls aligned? Region: the journal of ERSA, 5(1), 53-71. Web.

Wiegmans, B., Champagne-Gelinas, A., Duchesne, S., Slack, B., & Witte, P. (2018). Rail and road freight transport network efficiency of Canada, member states of the EU, and the USA. Research in Transportation Business & Management, 28, 54-65. Web.

The economic system is one of the driving systems for the development of the country. Thus, the government must constantly take various decisions and measures that will contribute to the improvement of this area. One of the most critical initiatives for the economy of the United States of America was the removal of the dollar from the gold standard by Richard Nixon in 1972. The main reasons were the fight against inflation in the country and handling the global situation with the exchange of the dollar for gold. A study of opinions regarding the exclusion of the dollar from the gold standard will help to gain an understanding of the reasons for this action and answer the question of whether this initiative was successful or had negative consequences.

First of all, it is necessary to understand the main reasons and motives behind the decision regarding the U.S. currency and the gold standard. Monetary policy itself is based on linking the value of the dollar to gold in the country (Costigan et al. 104). The basic concept was that other countries could set the price for the exchange of paper currency for this precious metal (Lioudis). Thus, the basis of this monetary system was that the price of gold set by the states determined the value of its currency. Research stated that the United States of America decided to get rid of the gold standard to curb inflation and prevent foreign nations from overburdening the system by redeeming their dollars for gold (Lioudis para. 2). Instead, the fiat system was adopted by the countries, and none of them used this method in the economic system any more.

Sources provide different opinions on the monetary policy of the gold standard. It is worth noting that Theodore Roosevelts program played a unique role in this policy. Therefore, the law required to hold gold equal to 40 percent of the value of the currency and to convert it into gold at a fixed price of $20.67 per ounce of pure gold (Richardson et al. para. 1). The crisis situation occurred during the bank holidays in 1934 when free gold began to flow out of the Federal Reserve of the United States. President Roosevelt undertook a program that prohibited exports of gold, the Treasury and financial institutions from converting currency and deposits into gold coins and ingots (Richardson et al. para. 2). It is noted that it had a negative impact on the value of the dollar against the precious metal.

In the future, the inauguration of the gold purchase plan will also significantly affect the depreciation of the U.S. currency. Source by Richardson et al. Notes that Roosevelts initiative was met negatively. For the most part, the leaders of the Federal Reserve did not support the presidents program and considered it unsound and ethically tricky. However, they had to come to terms with these circumstances, and they shifted responsibility to the Treasury.

The article by Forsyth titled 50 Years After Nixon Ended the Gold Standard, Dollars Dominance Faces Threat was of particular help in understanding the consequences and relations in monetary reform regarding the removal of the dollar from the gold standard. In this article, the author analyzes the consequences of Nixons policy and suggests what awaits the American currency in the future. The main consequence of the Presidents program was the transition to a free-floating currency (Forsyth). Thus, the dollar has become the primary monetary measure on the world market and has gained a significant advantage over other currencies.

Several circumstances contributed to the introduction of the new financial system. One of the main ones was Nixons desire to reduce the unemployment rate in the country and economic development. The initial consequence that followed the removal of the dollar from the gold system was a decrease in its strength and stability (Forsyth). Moreover, inflation played a significant role due to the rising cost of energy. The article, however, points out that the Treasury initially favored a cheaper dollar to reduce the U.S. trade gap (Forsyth para. 6). In addition, the authors show that the rejection of linking the value of the U.S. currency to the gold standard and the transition to freely floating currency contributed to a significant strengthening of the dollar in the international arena. Thus, the article under study adheres to the point of view that the detachment of the currency from the connection with the precious metal had a positive impact on its development in the future.

The last article that was considered in this work was How Nixon and FDR Used Crises to Destroy the Dollars Links to Gold by Jonathan Newman. The work stated that this action finally ended any semblance of a gold standard for the U.S. dollar (Newman para. 2). Moreover, the author describes the origins and significance of the Bretton Woods system, within which a monetary system was adopted to link the value of the dollar with gold. However, this policy has not shown good effectiveness since it took a sufficiently large number of years to stabilize it. As a consequence of the occurrence of unfavorable conditions that were discussed earlier within the framework of this work, Richard Nixon decided to abandon the gold standard for the dollar.

Further, the article notes the long-term effect that this financial initiative had on the modern economic system of the United States. Therefore, it is emphasized that in response to the crisis, the government took restrictive measures that were supposed to cover debasement, coin clipping, and money printing for the purpose of surreptitious extraction of wealth from a population (Newman para. 19). The author of the article comes to the conclusion that the extraction of the dollar from the gold standard has led to disastrous consequences for the country. The main results were an increase in the inflation rate, exacerbated inequality via the Cantillon effects, an increase in the role and control of the government, and financial crises.

In conclusion, this work was engaged in the study of various points of view regarding one of the most essential monetary reforms in the United States of America. This initiative was the removal of the dollar from the gold standard. This economic measure was taken within the framework of the Bretton Woods system and consisted in linking the value of the U.S. currency to the precious metal. The innovation has been functioning since the Second World War, but over time it began to show significant decreases in productivity. Despite Roosevelts attempts to transform it, President Nixon decided to limit monetary policy. Sources have different opinions about this initiative. Hence, some consider that the removal of the dollar from the gold standard influenced the strengthening of the currency in the international arena and provided it with significant advantages. On the other hand, it was also highlighted that the authors spoke negatively about the reform, as it caused high inflation and an economic crisis in the country.

Works Cited

Costigan, Thomas, et al. The US dollar as the global reserve currency: Implications for US hegemony. World Review of Political Economy, vol. 8, no. 1, 2017, pp. 104-122.

Forsyth, Randall W. 50 Years After Nixon Ended the Gold Standard, Dollars Dominance Faces Threat. Barrons. 2021. Web.

Lioudis, Nick. What Is the Gold Standard? Advantages, Alternatives, and History. Investopedia, 2022. Web.

Newman, Jonathan. How Nixon and FDR Used Crises to Destroy the Dollars Links to Gold. Mises Institute. 2022. Web.

Richardson, Gary, et al. Roosevelts Gold Program. no date, Federal Reserve History. Web.

Choosing a floating or fixed interest rate is an important decision. Depending on external facts, one can either make money or incur significant losses. There are certain rules and indicators in which it is necessary to choose a floating and a fixed rate. Moreover, there is a theory of market efficiency, according to which any significant information immediately affects the market value of securities (Lahiri, 2021). In addition, there are several types of market efficiency, depending on the scale, time, and influence of information production. A weak form of efficiency is if the value of a marketable asset fully reflects past information regarding this asset. The average condition of efficiency is if the value of a market asset fully reflects not only past but also public information. A strong form of efficiency is if the value of a market asset fully reflects all information  past, public and internal.

Assuming that the market efficiency hypothesis is correct, a fixed rate should be chosen. First of all, it is formulated by the fact that the risks can significantly exceed the benefits. Today, any information, both past, present, and future, has a significant impact on assets. An example is the mention of any companies by famous people, after which the share price increases significantly. However, it can backfire when a well-known person speaks negatively about the campaign, and the stock crashes. One cannot foresee how external factors will affect the company, respectively, cannot predict all the risks. Moreover, in a downtrend, a fixed rate is usually chosen, however, there is a risk that the share price will increase. Alternatively, if the main objective of the borrower is risk reduction, it is better to use a fixed rate. Although debt may be more expensive, the borrower will know precisely what his assessment and repayment schedule will look like and its cost.

Reference

Lahiri, M. (2021). Semi-strong form efficiency of Indian stock market in post-reform period. Walnut Publication.

Chile is regarded as a model in Latin America for its financial and political transparency. The country has been perceived to be among the fastest-growing economies for the past decade, making it substantially reduce poverty (GDP growth (annual %)  Chile, n.d.). The World Bank estimates that the influence of the COVID-19 crisis has had the potential to reverse the years of growth for the middle-class people in the country. In 2021, the nations GDP grew by 11%, with drivers being increased domestic consumption, inventory renewal, and economic measures to support income (GDP growth (annual %)  Chile, n.d.) as shown in figure 1 in the Appendix. However, in the coming years, the countrys economy is projected to continue growing at a slower rate and benefiting from the strong copper global process and continued monetary stimuli. In 2022, the GDP growth projection is expected to reach 2.5%, with its expectation to stabilize in 2023 at 1.9%.

The major industry is empowering Chiles foreign trade in the mining industry. The top exports of Chile are copper ore, refined copper, Fish Fillets, sulfate chemical wood pulp, and pitted fruits (Copper ore in Chile, n.d.). The products are exported mainly to China, the United States, Japan, South Korea, and Brazil. In 2020, Chile formed the biggest exporter of copper ore, refined copper, pitted fruits, molybdenum ore, and grapes globally (Chile  Mining, n.d.). Therefore, Chiles mining industry is one of its economic cornerstones because the country has large amounts of copper reserves, making it accountable for a third of copper output produced internationally. Following the performance of the manufacturing industry, in 2021, goods production increased significantly.

Chile forms the top copper producer globally, with 28% of international copper production, and the multinationals second-largest lithium producer, with a 22% share of the global population (GDP growth (annual %)  Chile, n.d.). The industry produced 5.73 million tons of copper in 2020, with 70,000 tons of lithium carbonate equivalent in 2019 (Chile  Mining, n.d.). Over recent years, the mining sector contributed to the nations GDP with 11% growth making it a prime sector of the countrys economy (GDP growth (annual %)  Chile, n.d.). This World Banks report also reveals that in 2021 the mining industry accounted for about 14.6% of the nations GDP, forming one of the highest recorded contributions since 2011. In 2017, the GDP was 9.7% representing an increase from the previous year. GDP growth (annual %)  Chile reveals that there was a decrease in GDP in 2018 at 8.9% and in 2019 at 8.2%. In 2021, the mining exports from Chile contributed to more than a 56billion U.S. dollars.

Considering the mining industry in the U.S. in 2021, the mining sector contributed 283.7 billion chained U.S. dollars of value to the real GDP of the U.S., which amounts to approximately 23 trillion U.S. dollars (GDP growth (annual %)  Chile, n.d.). The mining industry employs workers either directly or indirectly, and in the U.S., the industry became a majority in the 19^th century following new mineral discoveries (Copper ore in Chile, n.d.). Chile continues to perceive the United States services and products as innovative and of the highest quality. Some of the best investment opportunities are in high-value projects needing innovative solutions like smart grid technologies, public transportation platforms, data analytics, and 5G technology.

Chile is taking steps to increase its energy-installed capacity to meet growing demand over the next decades. This is because Chile has high energy costs, so it will need to integrate technology using new energy generations to increase supply. Among the US leading service and equipment exports include mining equipment, high-value food products, urban transportation, and automotive parts. Others comprise of clean energy, healthcare, security and safety, environmental technologies, agricultural equipment, telecommunication, and water resources.

The economic policy of Chile is based on the principle of capital transparency and non-discrimination against foreign investors. As a result, this principle has formed the cornerstone for attracting more investment in the country. Among the opportunities that the U.S. investors are attracted to are due to its judicial security, growth potential, stable macro-economic systems, natural resources, and high quality of infrastructure and low risks.

Therefore, some opportunities for U.S. investors include the mining industry, manufacturing, and agriculture. These industries form the basis of economic growth for Chile, which has boosted its GDP and contributed to poverty reduction (Chile  Mining, n.d.). Chile is considered a strong trading partner and export market; however, the country has challenges that an investor might consider while doing business to be sure of the opportunities before taking venture steps. Chile and the U.S. have longstanding business associations, with Chile being the largest U.S. goods export market globally.

One of the existing multinational organizations with initiatives in Chile that offers new trade opportunities is TMF Group. The organization has more than 30 years of experience helping international and local clients. The organization comprises wide-ranging expertise, and with local knowledge supported by global reach, it will be easier to understand Chiles business opportunities and market ventures. Doing business in Chile requires a good understanding of the business processes and potential challenges to overcome in business implementation.

In conclusion, Chile has been considered one of the fastest-growing countries economically in the past years. The country has a transparent political and economic environment with an increasing GDP growth rate, with the industrial sector entailing mining, manufacturing, and agriculture as the main contributors. Chile produces 28% of copper internationally and is a good region for U.S. exports. Some key factors for investors choice to explore the Chile market are its rich natural resources, low risks, quality infrastructure, growth potential, and judicial security.

References

Chile  Mining. (n.d.). International Trade Administration | Trade. Web.

Copper ore in Chile. (n.d.). OEC  The Observatory of Economic Complexity. Web.

GDP growth (annual %)  Chile. (n.d.). World Bank Open Data | Data. Web.

Appendix

The article by David Phillips introduces the dangers of the employee training investments based on the survey of various businesses. The research surveyed 600 Learning & Development (L&D) and HR professionals from large UK organisations with a global footprint (Phillips, 2022). Despite best intentions of the companies, nearly all employers surveyed report that training has failed to meet objectives over the past five years (Phillips, 2022). This means they risk investment going to waste unless they optimise planning, delivery and evaluation. Simultaneously, a quarter of businesses surveyed say there is a higher expectation to prove return on investment (ROI) for learning and development (L&D) (Phillips, 2022). Employers should review and look to where they can make improvements to the design, delivery and evaluation of programmes. The top reasons cited for their failure include poor planning, not having the right people taking part, or lack of evaluation (Phillips, 2022). Consequently, the need for proper planning in consideration of employee training is necessary before implementation.

This article provides essential knowledge about the nature and success of training programs as a way to induce professional development and increase in efficiency. In relation to the human resource management class this article serves as a reminder that not every approach to employee hiring and development is successful. In order to meet the goals of the company it is essential to either rehire employees for progressing tasks of the companies or spend more money on proper training. However, it might also stress the importance of employee evaluation in training and work as it is listed as common reason for failure of project goals. In conclusion, this article summarizes the new findings in the HR research and provides new insights for reevaluation of training.

Reference

Phillips, D. (2022). Investment in training on the rise, but so is ineffective L&D. The HR Director. Web.

Introduction

The US economy can continue functioning without freight trains, but not for very long. Economists and businesses are concerned about the possibility of the first nationwide railroad strike in thirty years. A lengthy walkout lasting a week or longer will seriously harm the countrys still weak supply chain, resulting in widespread closures and shortages, and very certainly increase prices even as inflation stays close to a 40-year high. If there is a strike, less gas will be produced, ruined crops, a shortage of new cars, and empty store shelves over the holiday season (Yurkevich, 2022). Additionally, there may be brief layoffs of factory workers shortly. The effects of a railroad strike would inevitably be devastating.

Impact of Railroad Strike on the Economy

Americas railroads continue to be essential for maintaining a healthy US economy. According to the Bureau of Transportation Statistics, they transport nearly 30% of the countrys freight when weight and distance are considered (Bureau of Transportation Statistics, 2019). Research released earlier this fall predicted that a rail strike would cost the economy $2 billion per day (LaRocco, 2022). Another recent study conducted by a trade association for the chemical industry predicted that if a strike lasts for a month, 700,000 jobs would be lost as manufacturers who depend on railroads shut down, prices would rise even more across the board, and the economy may enter a recession (CBS, 2022). If the trains stop, there truly is no alternative. Even if some companies would want to switch to using trucks for shipping, there are not nearly enough available.

Gas prices have been slowly declining for the past three months. However, a rail strike could cause prices to spike once more due to a lack of supplies. Refineries use pipelines to transport the crude oil they receive and most of the fuels they create, including gasoline, diesel, and jet fuel. However, a crucial step in the production of the gas used in homes is the use of railroad tank trains. Rail is also utilized to transport lower-grade goods, waste materials, and many chemicals required in refining. If the materials needed for the refinery are not arriving, this will translate to reduced production.

To prevent tank trains carrying hazardous substances from becoming stranded, railroads will stop shipping hazardous chemicals roughly a week before the strike deadline, which will immediately impact chemical factories and refineries. It will be challenging to obtain the chlorine that water treatment plants use to disinfect the water, as they may only have a weeks worth on hand. Shortage of clean drinking water would be one of the most direct impacts of this strike. Chemical factories also produce carbon dioxide as a byproduct. Therefore, beverage manufacturers supply of carbon dioxide to carbonate soda and beer would also be constrained.

Consumers may soon experience shortages of foods like cereal, peanut butter, and even alcohol at their local grocery store. Rail transport moves about 30% of all packaged foods in the US (LaRocco, 2022). Food shortages have been downplayed in the United States to prevent panic buying. Any interruption in rail service could also endanger the well-being of pigs and hens that depend on trains to transport their feed and push up the price of meat. Because their local supply of corn and soybeans from this years harvest is likely exhausted, and they would have to ship feed by truck, which would result in significantly higher costs, the National Grain and Feed Association claimed that a rail strike now would hit pork and chicken producers in the southern United States hardest. A railroad strike would soon put the nations food security in a dangerous situation.

Reactions of Americans

As a result of the Ukraine crisis, prices worldwide have skyrocketed, leaving US individuals in difficult financial circumstances. The economy is just recovering from the COVID-19 pandemic. The economy would be further threatened, and the lives of ordinary people would become more complicated if the nation entered a rail strike. This strike would trigger a feeling of sadness and resentment from the US citizens. Americans might end up losing confidence in the Biden administration. The President must ensure that Congress acts in haste to stop this strike. With the ongoing midterm election, resentment is the last thing the current administration wants to happen since this might make them lose a lot of elective positions.

In conclusion, a rail strikes impacts would start appearing quickly in the economy. Many companies only have enough raw materials and storage space for a few days worth of finished goods. Their clients and the producers of food, fuel, automobiles, and chemicals would feel the pinch. Not to mention the commuters who would be stuck since many passenger trains use freight railroads property. Congress needs to act promptly to avoid any looming calamity.

References

Bureau of Transportation Statistics. (2019). Bureau of transportation statistics. Web.

CBS. (2022). What a looming rail strike could mean for the american economy. Web.

Freitas Jr, G. (2022). Threat of US rail strike starts to shake up commodity markets. Bloomberg. Web.

LaRocco, L. A. (2022). Deadline to avoid a national rail strike which could cost economy $2 billion a day is near. CNBC. Web.

Pettypiece, S. (2022). How a rail strike could have a catastrophic effect on the drinking water supply for millions. NBC News. Web.

Yurkevich, C. I., Vanessa. (2022). Railroad strike, and the economic damage it would cause, looms closer | CNN business. CNN. Web.

Public firms are required to provide an annual report to shareholders that details their business activities and financial standing. The reports front section frequently includes an amazing collection of illustrations, images, and a narrative that describes the companys operations over the previous year and occasionally includes projections for the future (Hayes, 2022). The reports extensive operational and financial information is in the back (Hayes, 2022). An annual report details a companys operations from the previous year. It is a resource via which the companys interested parties, such as shareholders, workers, clients, and directors, quickly learn about the firm and its operations. It is typically created for a 12-month period, which corresponds to the businesss fiscal year.

The annual report contains the following financial reports:

1. Income Statement (a)
2. Balance Sheet (b)
3. A cash flow statement
4. Financial statement notes
5. Report from the auditor
6. Chairman/CEO Report

The following are the main categories of information found in each of these reports:

1. The income statement includes information on profit and loss.

   • Gross profit is determined by adding the cost of products sold to the total income.
   • Operating costs and gross profit are used to compute net profit.
2. Income Statement:

   • Asset information.
   • Information on Liabilities
   • Information on shareholder equity.
3. Cash Flow Statement:

   • All outgoing and incoming cash movements.
4. Financial Statement Notes:

   • Financial statement facts and data.

The U.S. Securities and Exchange Commission mandates the yearly filing of Form 10-K, which contains a full and thorough description of a companys financial performance (Form 10-K, n.d.). Form 10-K and the annual report to shareholders are two separate documents. Form 10-K contains information such as the companys history, equity, organizational structure, subsidies, and an audited financial statement, along with other information. In contrast, an annual report primarily contains the companys financial statements.

References

Form 10-K. (n.d.). Investor.gov. Web.

Hayes, A. (2022). Annual report explained: How to read and write them. Investopedia. Web.

On October 24, 1929, Black Thursday, a series of bankruptcies on the stock exchange ended the general fun and lightness that reigned in the United States in those years. On Black Monday, October 28, the Dow Jones Industrial Average fell nearly 13%. The next day, Black Tuesday, the market fell another 12%. By mid-November, the Dow had lost nearly half its value. The fall continued through the summer of 1932, reaching 89% when the index closed at $41, the lowest level of the twentieth century (Richardson et al.). The United States experienced an era of optimism in the 1920s, with automobiles, airplanes, radios, electrical appliances, and other technologies ubiquitousthe decade after World War I was a time of opulence and excess. Building on post-war optimism, rural Americans migrated to the cities in huge numbers hoping to find a more prosperous life in Americas ever-growing industrial sector. Americas GDP grew by 14% from $90 billion to $103 billion (Richardson et al.). The rapid growth also led to an increase in the standard of living and well-being of citizens, which financial players immediately used to develop and attract investment in the financial sector. A new industry of brokerage houses, investment trusts, and affordable banks allowed ordinary people to buy corporate stock. The severe dependence of the world economy on the dynamics of the economy in the United States provoked a global crisis due to the collapse of the stock exchange on Wall Street.

Fueled by the general hysteria, it was widely believed among ordinary people and even professional investors that the stock market would continue to rise forever. However, sustainable growth skeptics still existed: the Fed and Federal Reserve Bank governors believed that stock market speculation was distracting the economy from its primary goals  trade and industry (Cecchetti). The Fed also argued that the Federal Reserve Act did not provide for the use of the resources of the Federal Reserve Banks for speculative loans, which ordinary banks and their investor clients were happy to use. In the months leading up to the crash, Wall Street saw a surge in sales. Brokerage houses sprang up all over the country and were always full of people eager to make a profit. Hazardous was the particular system of buying shares on a deposit, which allowed ordinary people to buy shares on credit. When prices began to fall sharply, the owners of the shares, who bought them on the security, realized that their security was decreasing, so they were forced to pay increasingly increasing interest to brokers (Cecchetti). Customer accounts were cleverly forged, bank and brokerage books were double-entry bookkeeping and meant nothing, and financial controllers and supervisory services were led by the nose or bribed.

By 11 oclock in the afternoon on October 24, 1929, just an hour after the exchanges opening, the market was in the grip of panic. Investors who had previously bought the companys shares, which were recommended to them as prosperous, ordered brokers to sell them at any price. Although some bankers tried to save the day by investing millions of dollars in stocks, the effect of the intervention was short-lived. A large preponderance of sellers over buyers against the backdrop of significantly falling prices led to the selling of more than 14 million shares at negligible prices (Klein 344). Human tragedies accompanied the crisis. Unable to come to terms with bankruptcy, people preferred to take their own lives. Shares selling for thousands of dollars a week ago were now selling for as little as $1. The economic bubble burst, and the consequences were indeed severe.

After the crash, it turned out that in September alone, bank employees had embezzled more than $1.5 million at prices in the 20s. The perpetrators were arrested, charged with embezzlement, and sentenced to terms ranging from a few months to 10 years. In addition, the statistics are incredibly eloquent: the US GNP fell by 1.8 times from 103.9 to 56 billion dollars, the volume of investment in the economy fell by 85%, unemployment grew from 3% to 25%, about 17 million people found themselves without work, about 2.5 million Americans were left without a roof over their heads, about 100,000 private companies went bankrupt (Klein 348). In addition to private enterprises, industry and agriculture suffered, and those citizens who kept their jobs lost their wages. Finally, real estate prices have fallen significantly. Europe did not stand aside, and a wave of bank failures swept through it, up to the National Bank of Germany (Cecchetti). England abandoned the gold standard and devalued the pound, which in the aggregate, had global consequences: the economies of South Africa, Australia, Indonesia, and Brazil were shaken. Considering the extent and duration of the effects of the 1929 financial crisis, it was the most devastating stock market crash in the history of the United States and the world.

A financial crisis occurs when customers, banks themselves, brokers, and other participants in financial markets, in pursuit of exorbitant profits, begin to ignore and underestimate risks, which ultimately causes assets to depreciate. Consequently, the connectedness of the world economy generates a domino effect, causing a chain reaction of non-payments among all market participants and across all sectors of the economy as a whole. Each financial crisis triggers the redistribution of property, clearing the economy and related industries from inefficient owners and the processes they create. However, every decline is followed by an inevitable rise.

Works Cited

Cecchetti, Stephen Giovanni. The Stock Market Crash of 1929. Department of Economics, Ohio State University, 1992.

Klein, Maury. The stock market crash of 1929: A review article. Business History Review, vol. 75, no. 2, 2001, pp. 325-351. Web.

Richardson, Gary, et al. Stock market crash of 1929. Federal Reserve History, 2013.