Category: Finance

Single Sign-On (SSO) is a new technology that allows the employees to access all the companys data, websites, and apps using only one set of log-in credentials. However, like any system with such ambitious functions, SSO has its benefits and drawbacks. Some of these drawbacks can be mitigated through the careful and complex implementation process. Despite this possibility, the initial sources of the need for SSO must be evaluated, as some industries and businesses will benefit more from it and others  less. In other words, in some sectors, SSOs benefits may not outweigh implementation costs and potential flaws. However, SSO is a useful tool for the finance industry, especially considering its assistance in preventing cyber crimes prevalent in this industry.

SSO has three major advantages compared to the standard sign-in system: greater security, increased compliance in security matters, improved usability and efficiency, employee satisfaction, and future lower IT costs. Across the board, the employees report greater levels of ease of access and consequent satisfaction, as they only need to remember one password. The improved efficiency is also a direct benefit, as the employees need less time and effort to access the data. Moreover, this efficiency leads to increased available working hours for employees and consequent greater focus and company profits, The reduction of login time over the 7 day period showed a net gain of 168.3 h per week (Koundinya & Baliga, 2020, p. 413). On the other hand, security in the SSO system can be both advantageous and a drawback, depending on the implementation. In other words, if the system is implemented correctly, including necessary additional precautions, SSO can significantly strengthen the whole IT system from cyber-attacks. However, if a simple approach is taken in SSOs initial setup stage, the security system can fall instantly after only one password is leaked. Thus, the benefits of SSO are apparent for any business, but careful implementation is necessary to avoid drawbacks.

SSO is a suitable solution for the finance industrys constant threat of cyber attacks. The finance industry is arguably the most targeted sector by cyber criminals because of its nature of dealing with money. Many security solutions before SSO were unnecessarily costly, complex, and, thus, prone to error. However, SSO has the potential to provide a simple solution that is relatively cheap to maintain and easier to strengthen. As mentioned before, SSO alone is not sufficient to achieve these results. However, combining such tools as Multi-factor Authentication (MFA) is perfect for cyber security in the finance industry, as MFA provides a crucial extra layer of protection. Moreover, the above-mentioned ease of access and improved employee satisfaction can serve as a leveraging ground for increasing security compliance among the employees. Security training and mandates for more secure passwords can further strengthen security. Employees are more likely to set up and remember a complex password if it is just one or a few. Thus, SSO is a good option for battling the finance industrys ever-present security threat.

References

Koundinya, V., & Baliga, S. (2020). A review on single sign on as an authentication. System, 7(06). Web.

Pandey, P., & Nisha, T. N. (2021). Challenges in single sign-on. Journal of Physics: Conference Series, 1964(4). Web.

Introduction

Education is a vital need of modern society. It allows people to develop their skills and talents so that to further use them for their own prosperity and for the glory of their countries and continents. In Africa, the issue of education is rather burning as the weak economies of numerous African states do not allow their citizens to get proper education and work for the glory of those countries. Thus, students studying abroad are in an advantaged position as they can get an internationally acknowledged education and help their motherland develop. In this paper, I will focus on the areas of African development, namely oil and gas investments, which I might be useful for with the degree of master of finance I am eager to obtain in the nearest future.

Background

Needless to say, Africa experiences the great need of educated people able of structuring the work on developing the deposits of gas and oil that are rather substantial in Africa. Upstream and downstream oil production industries constitute the basis of economies of a number of African states including Nigeria, Libya, Algeria, Egypt, etc (Mbendi, 2009). In 2007, African countries produced 9.49% of the worlds oil. The production of crude oil, moreover, amounted to 12.5% of the worlds amounts in 2007 (Mbendi, 2009). As for the gas reserves, in 2007 African countries provided 8.22% of the worlds total amount, while in 2008 this amount grew by 6.45% more (Mbendi, 2009). This proves that oil and gas production is a vital sphere of African development.

At the same time, African countries mostly fail to present their youth with the proper education to prepare qualified professionals for developing this industrial branch (Mbendi, 2009). The poor people are deprived of educational access almost completely, while the middle and upper classes of society can afford to study abroad. Recently, the domestic South African, Nigerian, etc. universities started granting scholarships to the talented and focused youth to get educated and work for the development of Africa (Scholarship, 2009). However, these programs are yet at their beginnings and African development demands more professionals, so I think that my master of finance degree can be of help for this goal.

Master of Finance Degree

First of all, I am convinced that my degree can help develop the oil and gas production industry in Africa as the educational levels that I am able to acquire in my current university are rather high and only several of the African educational establishments can provide their students with a high quality of knowledge as the one I study at (USB, 2009). The educational basis I obtain in the university is able of providing me with a good position in a reputable company so that I could actually help to develop African industry through implementing certain practices that help American and European countries prosper from oil and gas production.

Moreover, the international acknowledgment of the educational establishments of the United States is also an important point in presenting the purpose of my masters degree. In other words, the international validity of the degree can facilitate my employment in a reputable and influential organization and might in its turn allow me to have more ways to help African industry develop. This will also allow me to find investors for the oil and gas industry, as Africa is currently suffering from a lack of funds for the development of its deposits (Mbendi, 2009). In other words, the more opportunities I will have through my masters degree, the more progress I might bring to African development.

Finally, the degree of master in finance obtained while studying abroad will allow me to have either already established or potential business- and cultural ties with the partners and potential assistants from the USA and some European countries and attract investment to the power generating industry in Africa. In other words, my knowledge of the international financial reality and ability to apply it to the African setting will provide Africa with new investments from the international companies interested in developing their businesses overseas and launching new areas of activity (USB, 2009).

Thus, the knowledge of financial principles and methods of effective investing, which I have learned for obtaining my masters degree, combined with the knowledge of African business reality will allow me to apply my masters degree in finance with the greatest use possible for the development of Africa. I would be able to attract investments into the power generating industry in Africa as I know, due to my masters degree and the knowledge it allowed me to obtain, that the favorable tax climate and conditions for business development will bring international investors to Africa.

Conclusions

To conclude, education is a burning issue in Africa where little amounts people have access to education and can really help develop the continent of Africa. Drawing from this, my masters degree in finance will obviously be of help for this purpose. IN other words, what I can do with my internationally acknowledged and highly professional education is I can take a rather high position in an African company dealing with oil and gas production and attract international investors to this branch of African industry. Having knowledge in finance, I know how to make those investments effective and how to bring Africa to a higher level in its industrial development.

Works Cited

1. Mbendi. Oil and Gas in Africa. 2009. Overview.
2. Scholarship.  Masters Scholarships for Emerging Leaders  Denmark/South Africa. 2009. Scholarship Positions.
3. USB. USB to present development finance masters degree in Nigeria. 2008. Communications.

Introduction

As with any initiative, child programs require financial management and planning to ensure success. Financial planning and management are the domains that allow the leader of the program to facilitate the process of predicting the amount of money needed and choosing who will compete for it. It is the process of developing financial policies for an enterprises purchase and management of finances. Some of the goals that financial planning allows to achieve are establishing requirements for capital, structuring the capital, framing financial policies, and ensuring that scarce financial resources are utilized with maximum efficiency. This paper will examine the domains specific to the financial management and planning of childrens programs.

Overview

Over the course of this module, I obtained knowledge relating to the basics of financial planning and management of scarce resources and learned about the importance of these aspects when working on a real-life project. After this course, I will be able to confidently manage the finances of a program because I understand the basic elements of this managerial aspect. For example, capital requirements should be determined by criteria such as the cost of current and fixed assets, promotional costs, and long-term planning (Jack, 2005; McGrath, 2021). Capital requirements must be considered from both perspectives of short-term and long-term investment. Capital structure is the composition of capital, for example, the relative sort and percentage of capital required in the firm. This encompasses both short-term and long-term debt-equity ratio considerations. Moreover, I learned about the development of financial policies for cash management, lending, and borrowing. A finance manager ensures that finite financial resources are used as efficiently as feasible and at the lowest possible cost in order to maximize returns on investment. Hence, this course has allowed me to fill the gap in understanding how financial resources are obtained, managed, and used in the context of child programs.

Reflection on an Imagined Child Care Program

An unmet need in the domain of child care is the support programs for parents who cannot afford quality child care and education for their children since these services are typically costly. People who reside in vulnerable communities are especially susceptible to the financial burdens associated with child care and should be assisted by the government. Child care programs can range from the ones facilitating the basic needs of children to large-scale projects aiming to help young individuals learn or develop certain skills (Administration for Children & Families, n.d.). For example, the United States government offers support to parents who cannot afford to pay for the quality education of their children through financial assistance programs (Administration for Children & Families, n.d.). Child care financial aid, often known as vouchers, certificates, or subsidies, is provided by the federal government to states and territories in order to give child care financial support to low-income families in their state (Administration for Children & Families, n.d.). These programs assist low-income families in paying for child care so that they can work or go to school, and states have their own set of eligibility standards.

In my opinion, such programs are essential as the financial burden of paying for a childs education can be substantial, and not every parent can afford to pay. However, education is among the predominant factors that allow children to have a quality life in the future; for example, by having a good education, they can go to college and find a job they would enjoy, and that would allow them to pay for their expenses. Moreover, this quality education builds a foundation for the future of the state as it allows to bring up responsible and qualified citizens. If low-income families with tough family circumstances are unable to afford the child care expenses beyond the basic ones, they can ask for additional financial help (Administration for Children & Families, n.d.). The existence of such programs allows children from different backgrounds to receive the care they need, regardless of the income that their parents have.

Problem and Possible Solutions

Evidently, financing of child care programs that would allow parents to send their children to a daycare facility and work full-time jobs or perform house chores is a problem in the United States. According to the World Population Review (2022), the average cost of daycare for children is $1,230 per month, while the federal government defines affordable care for children as something that constitutes 7% of the familys annual income. Currently, none of the states has centered child care that would meet this definition of affordable care services for children, and the governments support programs cover these expenses fully only in several states. Hence, there is a serious problem in the way child care is managed and its accessibility of it for parents, especially those that have low income, or for vulnerable communities.

Before the epidemic, child care in America was a significant issue, while after the COVID-19 outbreak, now it has been a major disaster. For millions of families across the country, it is prohibitively costly and difficult to get (McGrath, 2021). Furthermore, child care employees endure insufficient salaries and working conditions. As a result, thirty-five states are experiencing a rise in the percentage of parents leaving the labor market for child care reasonsa 36% increase since April on average, amounting to 1.2 million employees (McGrath, 2021). Lack of child care is now the third most commonly stated reason for not working, slightly eclipsing pandemic-related unemployment and furloughs owing to decreased business.

Child care in the United States is confronted with two existential issues that have far-reaching consequences for working parents, providers, and the greater economy. First, child care is prohibitively costly and difficult to obtain. Child care prices and availability were insurmountable hurdles for far too many families throughout the country, even before the Coronavirus outbreak. Spending on child care per kid increased dramatically from 1970 to the 2000s, growing by about 2,000 percent throughout that time period (McGrath, 2021). Moreover, child care spaces are at best minimal and care for newborns and children with impairments. These limits encouraged widespread dependence on informal care networks: before the crisis, 56 percent of parents stated they relied on care from a grandparent, family member, or friend due to financial constraints (McGrath, 2021). Therefore, parents are burdened with the high cost of child care, and those who are part of vulnerable communities cannot afford childcare altogether.

The issues described above were exacerbated by the epidemic. COVID-19 affected both the formal and informal child care industries, undermining stable care and job situations for whole families. According to McGrath (2021), as a result of increased health and safety procedures, costs have risen by an average of 47 percent for licensed child care facilities and 70 percent for home-based care centers. Evidently, the child care institutions factored these costs into the payments that the families have to make, making child care even more expensive.

This is a serious issuethe inability to pay or obtain child care has a negative ripple effect across the whole economy, forcing parents to stay at home or exit the work market, greatly impeding our countrys recovery. In September 2020 alone, about 900,000 women quit the workforce, four times the rate of males (McGrath, 2021). Moreover, based on a McKinsey survey, 25% of working women are considering downsizing their jobs or exiting the labor field entirely as a result of the epidemic (McGrath, 2021). This is an especially shocking development given that women had only surpassed males in the labor field a few months before the epidemic. The economy was highly strong for working women prior to the pandemic, but industry-specific effects, along with family care limitations, severely harmed advances gained prior to COVID-19.

Aside from the impact on working parents, excellent and inexpensive child care is critical to nurturing Americas children between the ages of zero and four before the regular public education system takes over. Quality child care promotes optimal brain development, offers school and socializing skills, and aids in closing the opportunity gap between children from rich and poor or working-class households (McGrath, 2021). Children who get high-quality child care from the age of zero to four are more likely to acquire adequate language, communication skills, and social and emotional intelligence  all of which prepare them for a lifetime of success.

Next, child care providers suffer low pay and uncertain working circumstances.

Child care may be a big challenge for working parents, and it isnt any simpler for industry providers and employees. Child care professionals are 92 percent female and 40 percent female of color; hence they are disproportionately affected (McGrath, 2021). Women of color are overrepresented in childcare positions, which pay less than $24,000 per year, or roughly $11.50 per hour (McGrath, 2021). As of July, the child care industrys employment was only 79 percent of its pre-pandemic level, implying that one out of every five jobs had been lost, generating severe economic distress. Moreover, Hispanic and Black women are more likely to be single breadwinners and the primary source of financial support for their families, which means that a loss of income or employment stability threatens whole families.

Child care accessibility and programs that allow lessening the burden of this for parents are a problem because financing primary care for children allows for addressing their basic needs. Primary Caregiving is presently used as a system and technique of care for babies and toddlers in todays daycare facilities (McGrath, 2021). In a child care center, there is more to this paradigm. This means that within a bigger group, each caregiver or instructor is allocated main responsibility for a specific group of children. This does not imply that the caregiver looks after the same three children exclusively. However, the caregivers primary obligation is to the children who have been allocated to them. Partially, this explains the high cost of child care as the facility has to hire many educators to substantiate the needs of the children.

The second aspect that causes the high cost and a second step in solving this problem using financial assistance programs for parents is that teachers in early childhood education must always evaluate and understand the needs of children and families. This means that these educators have to have a good education and developed skills that would enable them to work effectively. Early childhood teachers must not only cooperate with their colleagues to meet the needs of children and families, but they must also collaborate with multi-disciplinary teams to share ideas and debate the best outcomes for children and families in early childhood education settings.

The solution in terms of managing child care and its financing is in further improvement of the teachers qualifications, promotion of interdisciplinary collaboration, and provision of assistance to parents who cannot afford child care. Hence, a more detailed description of the multi-disciplinary team is that teachers collaborate with other professionals such as psychologists, child social workers, police, adult social workers, health visitors, and courts to provide various services and support for the needs of children and families. Thus, child care consists of a plethora of factors and requires specialists in different domains to support the adequate development of children. This idea supports the need for the proper financing and development of child care services and programs supporting child welfare. Practitioners have determined that the required welfare needs are critical for the fundamental safety, security, and health of the early years (Miller, 2021). These must also reassure parents and caregivers that their children will get high-quality care in all settings.

Conclusion

In summary, this paper is a reflection on the course material and the essentials of financing and management of child care programs. This paper details the problems relating to child care in America. Mainly, the high costs of these services were further worsened by the pandemic. Hence, parents can no longer afford to pay for childcare services, forcing them to quit their jobs and look after their children. The financial assistance programs that the government currently offers are not sufficient since they do not cover the costs fully. The solution is to address the causes of the high cost of child care in the United States and the expansion of the financial assistance programs for parents.

References

Administration for Children & Families. (n.d.). Child care financial assistance options. Web.

Jack, G. (2005). Childrens program administrator credential. NYSAEYC.

McGrath, J. (2021). Child care in crisis. Web.

Miller, C. C. (2021). How other nations pay for child care. Web.

World Population Review. Child care costs 2022 by state. Web.

Introduction

The management of the healthcare sector requires using not only adequate leadership practices and approaches to monitoring employee performance but also appropriate funding for innovation and industry development. In the work process, medical specialists of various fields, including physicians and nurses, face various problems and issues that need to be overcome in order to maintain a high level of public services. Certain practices and methodologies designed to help managers select personnel efficiently serve as supporting HR tools. At the same time, the management system itself depends on different factors, including a set of objective solutions to control the work of personnel and assistance from higher authorities. This work addresses two significant topics: the features of selection and recruitment in the medical industry and financing of this sector by using the example of the Irish healthcare system. The analysis can help assess the existing challenges and ways to overcome them.

HRM in Healthcare: Selection and Recruitment

Hiring professional and highly qualified medical staff is a responsible task for a number of reasons. According to Abdollahi, Tabibi, and Komeili (2018), healthcare specialists should be highly skilled and prepared for ongoing training since continuous education is an integral part of both physician and nursing practices. In this regard, most modern medical facilities approach the selection and recruitment procedures responsibly. The evaluation of these concepts can provide an opportunity to identify the key trends in the existing principles of human resource management and determine specific tools utilized for this work.

Theories and Concepts

Some modern approaches to the recruitment and selection of medical staff replace obsolete practices due to the emergence of more advanced assessment and testing systems for future healthcare employees. For instance, LaMartina, Zamierowski, and Dewan (2018) note that the traditional principle of assessing nursing students based on admission ranks cannot predict the outcomes of upcoming activities accurately. In this regard, more advanced tools are utilized, which can improve the quality of testing. The authors mention strategic simulations as mechanisms that create the most natural working environment and determine the degree of preparedness of future medical staff objectively (LaMartina, Zamierowski, and Dewan, 2018). Certain practices are designed to determine whether a particular specialist is suitable for a particular position. As Cogin, Ng, and Lee (2016) note, this practice is called a commitment-based approach and is based on evaluating the personal skills of medical staff in the context of the required range of upcoming activities. Such approaches to selection and recruitment are of practical importance and allow for a comprehensive assessment of applicants achievements.

Individual practices are designed to determine how objectively medical staff assess individual skills. Mazhindu et al. (2016) mention the Action Research approach as a tool that involves the voluntary involvement of employees in order to familiarize themselves with the upcoming range of activities and assess personal potential. However, more often, selection and recruitment methods imply evaluating job seekers by professional HR specialists. In particular, according to Cogin, Ng, and Lee (2016), the role theory is one of the main concepts utilized in the healthcare environment. The authors note that this mechanism consists in the possibility for HRs to influence job seekers work attitudes and determine the level of professionalism of the target audience (Cogin, Ng, and Lee, 2016). Such a model is convenient and suitable for both senior medical personnel and nurses. As a relevant example of workplace practice, the position of a nurse manager will be examined in order to determine appropriate selection and recruitment practices used for this post.

Workplace Example

Any leadership position requires commitment and increased responsibility, and the post of a nurse manager is no exception. As Haaland, Olsen, and Mikkelsen (2019, p. 2509) argue, employees of this profile are exposed to organisational, economical, scientific and political demands. These factors justify the need to develop objective recruitment and selection strategies. The authors note that the traditional principles of hiring nurse managers are characterized by an emphasis on high professionalism but the lack of support and proper training (Haaland, Olsen, and Mikkelsen, 2019). This means that outdated theories and concepts of HR activities in relation to hiring nurse managers can be ineffective in the context of professional growth. In this regard, Haaland, Olsen, and Mikkelsen (2019) offer employees responsible for the development and implementation of selection and recruitment strategies to pay attention to personalized job promotion techniques. In particular, the individual characteristics of nurse managers, for instance, their age, cultural background, professional experience, and some other factors can be evaluated as criteria that influence working interests and attitudes. In case such an HR practice is applied, healthcare institutions may employ motivated and talented nurse managers with high potential.

Challenges and Ways to Overcome Them

In different positions, healthcare employees have specific obligations that they have to fulfill for the stable operation of the entire medical institution. However, work practices may be accompanied by challenges and barriers caused not only by poor training but also by underdeveloped selection and recruitment strategies. For instance, according to Adatara et al. (2018), nurse managers should assist the HR department in hiring nursing staff and conducting training with subordinates. However, due to an insufficiently high educational and practical base, those in charge cannot create such a selection environment that would allow hiring suitable employees. Another significant challenge that Saifman and Sherman (2019) highlight is a high turnover rate caused by the insufficiently productive work of HR specialists and preventing the implementation of highly effective selection and recruitment practices. Addressing these gaps is a significant aspect of skilled leadership.

In order to overcome the aforementioned challenges, managers and HR specialists should promote appropriate workflow optimization strategies. For instance, as Adatara et al. (2018) note, productive leadership training is one of the mechanisms that allow educating decision-makers on the necessary selection and recruitment principles and filling the gap of insufficient competency. Addressing the issue associated with high turnover can be achieved by organizing a flexible workflow. According to Haaland, Olsen, and Mikkelsen (2019), the work-family balance is a criterion that is crucial to consider when promoting relevant HR practices. The healthcare sector requires high commitment, and creating a supportive environment is an important aspect.

Healthcare Funding in Ireland

The Irish healthcare system is a public sector that is largely funded by government grants and sponsorship of research projects. As an example, Smith et al. (2019) cite the results cited by the Economic Research Institute and note that financial management is provided by the responsible respective boards. As target projects for which budgetary funds are allocated, assistance to the older population of the country is considered, as well as to vulnerable groups, in particular, children. In general, the Irish healthcare sector has enough resources to provide good health services, but optimizing the financial management system is a significant task to improve the quality of medical care. The example of nurse managers activities in healthcare settings can provide insights into the success of the current program to support this public sector.

Nurse Managers Role

The workplace initiative to discuss can relate to the activities of nurse managers as important specialists coordinating both human resource issues and the nuances of budget allocation. Ryan et al. (2019) analyze this post in the context of the position promoted by the state public fund due to the age characteristics of these employees. As the authors argue, about one-third of all nurse managers in Ireland is over fifty, which, in accordance with the state financial assistance program, is a condition for additional financial payments (Ryan et al., 2019). This initiative is justified by significant losses for the medical sector due to the early retirement of highly qualified nurse managers. Therefore, the state allocates funds, which corresponds to the officially accepted program.

The duties and responsibilities of nurse managers are extensive in order to count on financial assistance. Wilson and Devkota (2018) consider projects that specialists in this profile should coordinate and note that their work initiatives, for instance, the implementation of advanced staffing practices, are prerequisites for material benefits. In addition, nurse managers are the senior link in junior medical teams and often carry out supervising functions that require high concentration and unconditional professionalism. According to Wilson and Devkota (2018), after the World Health Organization made recommendations to Ireland in 2014 to improve the quality of care by delegating greater powers to nurse managers, these employees obtained more opportunities. As a result, the range of responsibilities that this post assumes is an objective reason for additional funding from the budget.

Principles of Financial Management in the Irish Healthcare System

The Irish healthcare system differs from many others in that the insurance model is not key in shaping its financial base. Burke et al. (2018) analyze this industry and note that in 2011, there were attempts to restructure the budget in accordance with the insurance policy. Nevertheless, as the authors note, later, the inappropriateness of this strategy became apparent, and by 2016, none of the original proponents of this reform were ready to refuse the tax system (Burke et al., 2018). Money from the national fund, which is replenished by tax payments, goes to the development of the healthcare industry. Moreover, in addition to public funds, private sponsorship is also provided. However, according to Burke et al. (2018, p. 1281), its share is significantly less important: the amount of financial resources coming from public sources is 81%. Such a correlation indicates the strong dependence of the healthcare industry on the countrys budget and the dominance of the tax system as the main funding resource for medicine in Ireland. Therefore, the concept of health insurance funding is atypical for the state.

Challenges Faced by Nurse Managers and Ways to Overcome Them

In the Irish healthcare system, some outdated approaches to organizing financing and identifying responsibilities for specific sectors may cause challenges for certain categories of employees involved. In particular, nurse managers, as professionals who carry out a wide range of duties and participate in the planning of the work process, can face high workloads. As Wren and Connolly (2016) state, reduced funding can cause increased working hours to meet the performance requirements of medical personnel. As a result, due to a decrease in funds that could be spent on attracting additional junior employees, nurse managers are forced to conduct many operational tasks on their own, which is fraught with working fatigue. Another potential challenge that Power (2017) mentions and that is a consequence of the aforementioned gaps is increased expectations. Under high workload conditions, nurse managers are not obliged to weaken performance and worsen patient outcomes. Nonetheless, with a shortage of workforce and insufficient resources for urgent interventions, it is challenging to achieve high operating outcomes. As a result, fatigue and overly high expectations from both senior managers and patients are potential problems.

Overcoming these challenges should take place with the participation of various stakeholders, including senior managers and government agencies. In individual healthcare settings, department heads can coordinate workload based on the current workforce rather than optimal indicators, which can reduce fatigue. In relation to increased expectations, a reporting system is a convenient way to determine the range of tasks in which they are performed by nurse managers. Employees of this profile are not required to perform duties that are outside the scope of their authority. As a result, due to reports, nurse managers will be able to justify their activities and protect labor rights.

Conclusion

The principles of selection and recruitment in the medical field and the peculiarities of healthcare funding in Ireland are the topics addressed. In relation to HRM, several theories and concepts are applied, and the commitment-based approach is one of the valuable strategies. By using the example of a nurse managers position, challenges and ways to overcome them are identified. For the healthcare sector in Ireland, the tax system is the main financing platform, and the insurance principle is not the dominant concept. The role of a nurse manager is significant, and the existing gaps define high obligations and requirements.

Reference List

Abdollahi, A., Tabibi, J. and Komeili, A. (2018) Selection, recruitment and training of nursing managers in hospitals: a comparative study, Modern Care Journal, 15(3), p. e81682.

Adatara, P. et al. (2018) Challenges of being a hospital nurse manager in the Volta region of Ghana: a qualitative study, Nursing Management, 25(5), p. e1773.

Burke, S. et al. (2018) Sláintecare  a ten-year plan to achieve universal healthcare in Ireland, Health Policy, 122(12), pp. 1278-1282.

Cogin, J. A., Ng, J. L. and Lee, I. (2016) Controlling healthcare professionals: how human resource management influences job attitudes and operational efficiency, Human Resources for Health, 14(1), p. 55.

Haaland, G. H., Olsen, E. and Mikkelsen, A. (2019) Making a career in hospitals: determinants of registered nurses aspirations to become a manager, Journal of Advanced Nursing, 75(11), pp. 2506-2515.

LaMartina, K., Zamierowski, D. and Dewan, M. (2018) A method to improve the selection of nursing students, Journal of Nursing Education and Practice, 8(12).

Mazhindu, D. M. et al. (2016) The nurse match instrument: exploring professional nursing identity and professional nursing values for future nurse recruitment, Nurse Education in Practice, 18, pp. 36-45.

Power, M. (2017) Commissioning of human and social services in Ireland: potential, opportunities and challenges, European Journal of Social Education, 28/29, pp. 83-91.

Ryan, C. et al. (2019) Ageing in the nursing workforce  a global challenge in an Irish context, International Nursing Review, 66(2), pp. 157-164.

Saifman, H. and Sherman, R. O. (2019) The experience of being a millennial nurse manager, JONA: The Journal of Nursing Administration, 49(7/8), pp. 366-371.

Smith, S. et al. (2019) Geographic profile of healthcare needs and non-acute healthcare supply in Ireland. Dublin: ESRI.

Wilson, D. M. and Devkota, R. (2018) A study of nursebased Injury Units in Ireland: an emergency care development for consideration worldwide, The International Journal of Health Planning and Management, 34(1), pp. e72-e84.

Wren, M. A. and Connolly, S. (2016) Challenges in achieving universal healthcare in Ireland. Dublin: ESRI.

Introduction

The hospital industry in the United States is a sector where three types of ownership have long existed. Many studies have focused on the differences between private non-profit, commercial, and public hospitals in terms of efficiency and treatment outcomes. Financial indicators also depend on the type of ownership of the medical institution. Understanding the dependence of a financial indicator on the kind of ownership is essential for structuring the management and financing system. The main challenge is that public and non-profit hospitals provide cheaper or accessible care, which results in more clients and a more comprehensive range of services (Alumran et al., 2021). Firstly, it is necessary to find a balance in the distribution of consumers of health services between different types of hospitals. Financial difficulties negatively affect the performance of any hospital, so it is crucial to identify ways to eliminate them to improve the quality of medical care. The search for ways to optimize costs and revenues is complicated by the urgent need to maintain and improve the quality of healthcare services.

Defining Ownership Types

The form of hospital ownership directly affects the profits of healthcare organizations. In the United States, three forms of ownership of a medical institution successfully exist private, private non-profit, and public, including district and county hospitals. Since healthcare is a profitable industry, private individuals organize medical institutions aimed at making a profit for the owner. Private hospitals are not owned by the government and are funded by patients and insurance companies. This form of ownership is common in most countries worldwide and successfully operates, making a profit.

A non-profit hospital does not directly profit from patient care for the owners and operates on voluntarily collected funds. Charities or non-profit corporations often own non-profit hospitals. District and county hospitals are state-owned; a district hospital is usually the main medical facility in its region, with a significant number of intensive care and long-term care beds. A county hospital can be any county-approved facility that provides medical services. Non-profit and public hospitals are not for-profit and are intended to provide affordable healthcare options to the public.

Challenges and Problems: Impacts on Healthcare Finance

The key differences between for-profit, non-profit, and public hospitals provide a basis for discussing the impact of ownership on financial hardship. Non-profit private hospitals are not subject to federal, state, or local taxes. In keeping with their purpose and community focus, non-profit hospitals are often affiliated with a particular religious denomination or non-profit charitable organization. Non-profit hospitals, on average, provide more pro bono care than for-profit hospitals. However, for-profit hospitals tend to serve low-income populations, while non-profit hospitals are located in communities with less poverty, higher incomes, and fewer uninsured patients (Alumran et al., 2021). Public hospitals are underfunded and forced to provide affordable care, often lacking the resources to support it.

In addition to the fact that commercial hospitals pay significant amounts of taxes, their costs of attracting consumer services are much higher. For example, commercial hospitals spend much more resources on advertising and marketing. While public and non-profit hospitals do not need to engage in customer acquisition. Whether a hospital is non-profit or commercial, the community it serves must understand how the hospital operates and allocates resources. Non-profit and public hospitals provide more affordable services; at the same time, commercial hospitals may have the resources to offer unique and rare services. The main difficulty is the uneven distribution of consumers, resulting from which commercial hospitals do not bring enough profit. Non-profit and public hospitals have difficulty serving a large number of patients due to a lack of resources.

Review of the Literature

The literature on the impact of hospital ownership type on hospital performance is quite diverse. However, the financial side of the issue is less affected. To understand the topic of the economic situation and difficulties of the hospital, a detailed study of the specific literature was required. In addition, it was essential to understand how the services of hospitals with different types of accommodation differ since they form a cost. Thus, Berger establishes a direct link between service quality and financing (2014). It becomes clear that lack of funding and inefficient allocation of resources is a common problem for all types of healthcare institutions. A study by Alumran and his colleagues aims to examine the quality of care in private and public hospitals (2021). The researchers conclude that visitors to private hospitals expected a higher quality of care (Alumran et al., 2021). These results suggest that public hospitals either lack funding and resources or have a more increased patient flow that hinders the provision of better care.

Discussion of the impact of not taxing non-profit and public hospitals is raised in the academic literature. Bai et al. conclude that philanthropic aid is not eligible for preferential taxation (2021). That is, the preferential tax regime does not correspond to the quality of medical care (Bai et al., 2021). Non-profit and public hospitals have a much broader patient base, and their funding is still not enough to serve everyone. When analyzing the financial situation of hospitals, it is necessary to consider related factors. Thus, Khullar et al. update their study on the impact of the pandemic on US hospitals (2020). Coronavirus exposed all the systems weaknesses and contributed to a significant redistribution of forces in the healthcare market (Khullar et al., 2020). Non-profit and public hospitals had more intensive care resources than private commercial ones.

Finally, the literature used was supposed to offer solutions to emerging financial difficulties in the healthcare sector. One common theme in exit patterns is the use of new technologies to streamline hospital processes. Wang et al. argue that investing in health information technology improves the financial performance of hospitals (2018). Artificial intelligence and cloud technologies will also optimize hospital processes and reduce the waste of material and human resources (Yuan et al., 2022). Although the implementation may take considerable time and effort, the result of using technological solutions should be positive on the financial side of the issue.

Critical Analysis

Private hospitals operate on an understandable principle, along with any other business, responsible to shareholders and investors. Public and non-profit hospitals, in turn, must take care of the underserved population (Bai et al., 2021). Despite the difference in management approaches and forms of ownership, all types of hospitals can experience financial difficulties. Non-profit clinics regularly face a lack of funding and the need to provide services in a cheaper segment. It can be challenging for private clinics to find a balance between attractive prices for clients and decent earnings to continue developing their businesses. Public clinics cannot always boast of reputable services, and funding from the state is limited.

Surprisingly, non-profit hospitals are often the most successful and profitable. The not-for-profit label comes from being exempt from federal and local taxes in exchange for providing a certain amount of public goods (Bai et al., 2021). The public benefit of hospitals should be more clearly defined in terms of tangible health benefits for residents. Indeed, non-profit private hospitals are more profitable than for-profit private hospitals due to several government benefits (Bai et al., 2021). If a private business does not have to pay taxes, its costs will be lower. Since non-profit hospitals are defined as charitable institutions, they can benefit from tax-free donations from donors and tax-free bonds for capital projects, which for-profit hospitals cannot do (Bai et al., 2021). The real question with non-profit hospitals is whether the benefits to society are equal to what taxpayers donate to these hospitals in the form of tax credits.

It is essential to recognize the extreme disparity in the financial situation of hospitals. Many non-profit hospitals, especially in rural areas, are experiencing significant difficulties; dozens of rural hospitals have closed and hundreds more are abandoned (Khullar et al., 2020). At the other end are hospitals that earn several thousand dollars per patient. The most profitable non-profit hospitals tend to be part of substantial healthcare systems. Consolidation is one of the drivers of high profits, as monopoly hospitals are known to charge higher fees than non-monopoly hospitals.

Public hospitals across the country are facing multiple financial problems, causing some institutions to declare bankruptcy and others to close. Public hospitals in states that have not expanded Medicaid programs are under a lot of pressure because they tend to have a higher proportion of low-income patients. Some public hospitals face financial problems as fewer patients seek care at their facilities (Khullar et al., 2020). Community hospitals need to monitor falling patient numbers closely and determine if their market is shrinking or if they are losing patients to competitors.

Hospitals need a cost accounting department or tools that allow them to take a deeper look at their finances to determine if a referral is profitable. While the accounting system is costly, such investments can decide whether a hospital remains viable or closed (Berger, 2014). By knowing the cost of each component of patient care, community hospitals have more leverage in negotiating with payers and can formulate plans to cut costs.

Commercial hospitals are seeking to earn a return on equity. They do this through a business model that relies on solid and stable cash flow. Secondly, they target more profitable sectors such as less expensive elective surgeries and more difficult patients (Berger, 2014). For-profit hospitals tend to place more emphasis on planned emergency care than other types of hospital ownership; they may experience a shortage of clients. The collapse in stock prices for commercial chains of hospitals reflects the financial difficulties faced by the private sector.

Recommended Solutions

A possible solution to financial problems will be using technology to solve everyday problems. Management can use the data to determine where appropriate personnel changes should be made to improve efficiency and reduce costs (Wang et al., 2018). Management needs to evaluate the current organizational structure to pinpoint the circumstances under which levels of command and control may be reduced. Another effective tool can be to provide decision-makers with training, tools, and support to effectively oversee their units and quickly respond to critical issues that can significantly positively impact the bottom line of a business. Core processes need to be streamlined to provide fast and efficient assistance. In cloud storage, the medical staff can easily organize data from financial indicators to patient cards (Yuan et al., 2022). Despite their high cost, technological solutions will provide serious financial simplification later. To successfully implement technical solutions, hospital staff must be educated and prepared.

From patient flow to emergency department operations, core practices are essential for staff accountability, effective communication, and teamwork across departments. It can be effective to review supply chain management and non-labor costs to identify additional opportunities to reduce them. Areas for evaluation include medical and surgical supplies, purchased goods and services, and inventory. Reducing costs in a hospital is a challenging task, as finding a balance between quality and price is necessary. Proper allocation of funding for public hospitals should be a key priority. For-profit private hospitals should focus on reducing costs through restructuring and additional staff training. Non-profit hospitals must recognize the social value and align with other healthcare sectors.

Implementation of Solutions

Making significant changes in any organization is a complex process in which both the team and senior management must work together. Implementing new plans to overcome financial difficulties should begin with managements conviction in the correctness of the decisions made. Management must understand that improved staff education, restructuring, and the use of technology will lead not only to increased profits but also to greater customer satisfaction. The next step is to develop a detailed change implementation plan. It will also require a conversation with the staff to help identify inefficient employees.

Management needs to review the supply chain, evaluate equipment and recognize the need for restructuring to achieve better financial performance. The introduction of new solutions should also be accompanied by a proper evaluation of the models effectiveness. The assessment can be carried out using a customer satisfaction survey and a quantitative indicator. The number of clients is easy to estimate using an electronic database. Patient satisfaction with the services offered may indicate that the quality of services has not declined when costs have been reduced.

Justification of Solutions

The study demonstrated a significant impact of ownership type on hospitals financial performance. Currently, there is a substantial preponderance of forces toward non-profit private hospitals. Public and private hospitals are losing customers and profits, which affects the quality of services and the position of medical staff. Changes are needed to find a balance that will lead to an adequate distribution of forces in the service market to provide affordable assistance to all citizens. Attracting customers, raising the level of education, and using technological advances will allow hospitals to equalize in quality of services. In this case, it will be possible to count on an equal distribution of costs and profits.

Conclusion

There is a significant difference in the level of the financial well-being of private, non-profit, and public hospitals. Private hospitals are often facing a lack of solvent clients. Non-profit hospitals create a significant gap in the distribution of patients due to the low cost of services and the absence of the need to pay taxes. Public hospitals suffer from inadequate funding and resource allocation. Balancing profitability and not losing the quality of services is a complex undertaking for a hospital of any type. The right decision in this vein would be to introduce technological solutions to optimize hospital processes. It is also necessary to review supply chains for efficiency and the correct distribution of intrahospital resources. It is required to increase the level of staff training so that they can cope with technological innovations.

References

Alumran, A., Almutawa, H., Alzain, Z., Althumairi, A., & Khalid, N. (2021). Comparing public and private hospitals service quality. Journal of Public Health, 29, 839-845.

Bai, G., Zare, H., Eisenberg, M. D., Polsky, D., & Anderson, G. F. (2021). Analysis suggests government and nonprofit hospitals charity care is not aligned with their favorable tax treatment. Health Affairs, 40(4), 629-636.

Berger, S. (2014). Fundamentals of Health Care Financial Management: A Practical Guide to Fiscal Issues and Activities, 4th Edition. Wiley.

Khullar, D., Bond, A. M., & Schpero, W. L. (2020). COVID-19 and the financial health of US hospitals. Jama, 323(21), 2127-2128.

Wang, T., Wang, Y., & McLeod, A. (2018). Do health information technology investments impact hospital financial performance and productivity? International Journal of Accounting Information Systems, 28, 1-13.

Yuan, X., Shi, C., & Wang, Z. (2022). The optimization of hospital financial management based on cloud technology and wireless network technology in the context of artificial intelligence. Wireless Communications and Mobile Computing, 2022, 4(1), 111.

There are many different bond kinds, and each has benefits and drawbacks for the parties involved. Municipal and corporate bonds will be reviewed in this session. They demonstrate different levels of risk and are accompanied by several considerations before investment. However, it could be argued that municipal bonds are effective for investment in relation to corporate bonds due to the lower level of risk associated.

Municipal bonds are one sort of bond issued by cities, states, and counties and used to finance their public initiatives (Keown, 2019). One of the significant advantages of municipal bonds is the exemption from state taxation in regions where they are acquired. Additionally, compared to the typical corporate bond, their credit quality tends to score higher, which is seen in Figure 1 (Howard, 2021). The American High-Income Municipal Bond is one illustration (AMHIX). This particular bond has produced a 10-year annualized return of 5.46%, as reported in November 2020. Investors pay a 3.75% upfront sales load in addition to the mutual funds 0.67% expense ratio when purchasing shares (Horton, 2020). Both qualified and non-qualified investment accounts must have a minimum investment of $250 (Horton, 2020). Municipal bonds have several drawbacks, including the possibility of losing money invested, which would result in no return for the investor, and the potential difficulty in selling them before they mature because their market is less than that of other bonds.

Corporate bonds provide varying degrees of safety and return on investment. Smaller investors who want to diversify their portfolios without investing much money tend to be interested in them because they often start at around $1,000 (U.S. News & World Report L.P., 2021). It is possible to expect an average of 8-10% return given that the investments are made into high-rated companies. Corporate bonds have the largest default risk compared to other bonds, and they are taxed in three ways: through interest income, capital gains or losses from selling the bond before its maturity, and an original issue discount (Tarver, 2021).

In conclusion, corporate bonds carry the highest risk, but investment returns are often at a level that is twice as profitable. Corporate bonds are often pursued by venture capitalists, while municipal bonds are more likely to bring stable profit for investors. Therefore, given the lower risks associated, it is evident for novice investors, municipal bonds are more attractive.

References

Keown, A. J. (2019). Personal finance: Turning money into wealth. Pearson.

Howard, C. (2021). Why investors should consider taxable municipal bonds. Schwab Brokerage. Web.

Horton, M. (2020). 5 Municipal bond funds for 2021. Investopedia. Web.

U.S. News & World Report L.P. (2021). Everything you need to know about investing in Federated Hermes Corp Bd Strat Port. U.S. News & World Report.

Tarver, E. (2021). How are corporate bonds taxed? Investopedia.

The International Monetary Fund (IMF) is an institute of 186 states, functioning to promote international financial support, protected monetary firmness, smooth the progress of global trade, endorse high employment and maintainable financial expansion, and decrease scarcity around the globe (Barbara 2003). So from this definition, it is palpable that International Monetary Fund is working in collaboration with other countries to uplift the financial conditions of developing countries and to fight against recession.

World Bank

World Bank is supposed to provide developmental assistance to third-world countries or developing countries. It offers loans and financial, moral support and also gives training in the private as well as public sectors (Reem 2009). Overall its main purpose is to provide full support to countries so that they might be able to survive and progress to achieve their financial goals. As it is an international organization, so it has 186 countries as its core members. Membership cannot be gained directly, however first the country has to join International Monetary Fund to become a member of the World Bank.

World Bank, IMF, and global finance

Now moving towards global finance, both the institutions i.e. World Bank and International Monetary Fund are responsible to resist financial crises around the globe. Global finance is to provide sufficient support to countries facing financial crises by investing in their markets to bring them back into the normal financial cycle. Global financial crisis results in recession and hence results in unemployment as markets are collapsed, so businesses are automatically closed in this situation. So in a crisis, IMF and World Bank work in collaboration to support the economy of any specific country. Recession affects the stability of the world economy that is why developed countries provide more and more funds to invest in undeveloped countries to minimize the financial risks (Nagesh 2009).

So there is a direct relationship between the International Monetary Fund and World Bank i.e. they control the global financial crisis. International Monetary Fund provides the medium or plat form through which a country can demand for sufficient funds to regain their economic position and the funds are provided by World Bank. So this is the process through which International Monetary Fund and World Bank is controlling global finance.

China

This graph is showing the position of China as compared to other developed countries. China holds the strongest position and this is due to its progress in public sector. In the recent years, China changed its facial policy; as a result China is enjoying strongest position and boom in its economic state. China is giving more attention towards its pubic sector and emphasis to promote international trade, which helps China to grab further market share in the international markets (Eswar and Steve 2004).China is also under threat of recession and financial crisis in coming years due to the present recession in the world economy.

It has decided to rescue this downfall in the global financial structure by contributing large amounts in order to avoid future dangers. This is very optimist approach of Chinas government, as they dont want to lose their existing position and international market share. However, unemployment and market crisis at lower level have been identified in China. So this is alarming signal for China to take appropriate measures in order to sustain their economic position in future. So, this is a brilliant example that explains the concept very clearly that there is a connection between the International Monetary Fund and World Bank in controlling global finance.

Bibliography

Books

Eswar, P. and Steve.B.(2004) Chinas Growth and Integration into the World Economy: Prospects and Challenges,1^st ed.,London: International Monetary Fund.

Barbara,I. (2003) International Economics: A European Focus, 1^st ed.,London: FT Prentice Hall.

Websites

Keynes, I. (2008) Chinas fiscal stimulus, The Economist. Web.

Nagesh, K. (2009)  Mitigating global financial crisis, The Economic Times. Web.

Reem, H. (2009) What is the World Bank, Investopedia: A Forbes digital company. Web.

Introduction

The United States of America uses the United States dollar as its official currency. This is usually abbreviated as USD, $ and US$. These are normally used to make it distinct from other countries which abbreviate their currencies using the dollar symbol. In addition, the USD is divided into 100 cents. The countrys currency is mostly used in international transactions. It is one of the worlds reserve currencies.

On the other hand, it is mostly used as the official currency. Other countries have gone ahead to use it as their de facto currency. This implies that the dollar is used as a standard unit of currency. More so, this is seen in international markets where the dollar is used for commodities like petroleum and gold. Other companies that are involved in global businesses have used it to list their prices. Apart from being the worlds foremost reserve currency, countries (Institutions and central banks) have private holdings in it.

These ones are mostly evaluated in one hundred dollar banknotes. Wholesomely, most USD bank notes are held outside the United Sates of America. These bank note holdings that are held by USA non residents are called Eurodollars. They are highly considered regardless of the location (of the bank) that the person has his/her holdings in.

There is a lot of overseas demand for the dollar as a result of global trade that has continued to grow. As much as this demand has continued to surge, it has not caused the value of the currency to depreciate or readjust in any given case. This continued over reliance on the USD can have some global consequences as it was recently seen during the global economic crisis.

Discussion

The dollar and exchange rates

In recent years, many countries have linked their exchange rates to the USD. The dollar is still highly valued as an international reserve currency. This is because it has a high accumulation value. Although the Euro has also come up as a replacement, it has not been effective. It is expected that it will be a primary reserve currency.

Currently, the USD is regarded as the most important currency in the world. As a matter of fact, it comprises more than 60% of the worlds foreign exchange reserves (Goodman, 2005, p. 12). This explains why the currency is mostly used as a standard unit for all commodities which are traded on a global scale. Such commodities include oil and gold which are considered as international commodities.

Many countries are embracing the dollar because it is widely accepted by all countries as an international currency that can be used in global trade unlike other currencies which are not widely recognized (Suranovic, 2008, p. 4). Because of this, many countries (both developed and developing) have continued to utilize the dollar in their international trade. This can be explained from its accumulation value which is almost guaranteed unlike other currencies which seem to have unpredictable values.

The dollar has continued to strengthen its value in recent years as many countries have adopted it by linking it to their exchange rates. For instance in 2009 its exchange rate with the Euro stood at 0.7176 units (Copeland, 2009, p. 6). By engaging in global business, many countries have an option of evaluating themselves with others by looking at the exchange rates. It is through these exchange rates that they are able to analyze how their exports are fairing. By considering the performance they can be able to devise ways of improving their projections.

Eighty percent of the worlds transactions are conducted in terms of the USD. This means that all countries are moving towards this direction (Copeland, 2009, p. 12). If most transactions are conducted using the dollar, then it means that countries have to link their exchange rates to it. Countries which do not embrace this are likely to have problems in exchanging their currencies. Global business dynamics are always changing and that is why countries have recognized that it will be easy to link their exchange rates to the dollar as it is mostly monitored by their fellow trading partners.

The USD is considered as the best currency which can withstand turbulent times and political uncertainties. This is the direct opposite of other currencies that are not reliable. United States of America is considered to be the worlds largest economy and as a matter of fact it does not have major political instability (Evans-Pritchard, 2007, p. 9). By being the largest economy it has the capacity to enhance stability in international trade. This explains why many countries are more secure to link their exchange rates to the dollar than doing this to other currencies.

As long as the US does not have any fears about its economy there will be a favorable exchange rate around the world. Over half of the worlds exports are paid in terms of the USD. This explains the necessity to link a countrys exchange rate to the currency (Cohen, 2006, p. 3). Good trade dictates that as much as a country has to import, it should also export to enhance its trade position. Therefore, to be secure most countries have linked their exchange rates to the dollar for sustainability.

Besides this, many countries are engaged in the dollarization of their currencies. This means that majority of them are engaged in adopting it as the official currency. As this practice picks up they have seen the need to link their exchange rates to the dollar. It is believed that with the USD, there is financial security and this explains why they have opted to use it for all exchange activities.

Apart from countries, the USD is a defacto currency that is widely accepted by people. This means that as it is widely accepted; economies have to facilitate their exchange rates by linking it to the dollar so that citizens wont have any problems going about their business. Movements around the world can only be facilitated by the USD and this explains the need for countries to link it to their currencies (Ravenhill, 2005, p. 6). By doing this, they have made it easy for their citizens to go about their global issues without any difficulties.

Because of enhanced international trade, more and more countries are expected to link their currencies to the $. Over recent years, the dollar has maintained a stable exchange rate with other currencies and this argues well for countries (Helleiner, 1996, p. 17). As a matter of fact, this stability is set to continue. This means that more countries will likely link their exchange rates to the $. Currently other world major currencies are facing problems as much as the dollar but it has maintained a positive outlook which makes people to have faith in linking it to their exchange rates.

International monetary system

These are internationally acknowledged rules with supporting institutions that have conventions (Cohen, 2006, p. 4). Their main aim is to enhance international trade together with various investments. All this is targeted at the reallocation of capital between different countries. To enhance this, international monetary systems come up with a means of payment that will be acceptable to sellers and buyers. This is supposed to take care of all individuals regardless of their nationality.

International monetary systems are supposed to inspire confidence that will ensure that there is sufficient liquidity. On the other hand, this is set to correct all global imbalances that may occur (Ravenhill, 2005, p. 11). They can likely grow as a result of numerous agreements between international economic actors. As a result of these international monetary systems, United States of America has ended up having a greater monetary autonomy.

Considering the fact that the countrys currency is used for international transactions, this greater autonomy can have serious implications. This can be more so incase the country experiences any problems that may end up being costly to other countries. The current global economic crisis emanated from the USA and slowly trickled to other countries (Copeland, 2009, 24). This autonomy does not argue well in the current world.

There are evolving exchange rates with various economic regimes. Because of this, the world has witnessed a radical alteration of the financial environment (Evans-Pritchard, 2007, p. 15). This alteration has not been within the expected frameworks and this has in one way or another destabilized trade and the way countries go about with their currencies.

The US dollar is relied on as the principal reserve currency. On the other hand, this over reliance is set to bring problems to the world as the US experiences financial and economic problems. Countries have been forced to hold precautionary reserves as a way of enhancing self insurance (Suranovic, 2008, p. 13). This is because the current International monetary systems have led to a high demand for external liquidity and foreign exchange. Although this can be as result of balance of payment problems, it can lead to global liquidity shortages.

The current International monetary systems have brought about some unexpected patterns of international capital flows. This has had some implications on how different economies perform in a broad perspective. Capital flows have an impact on the general economic stability of a given country. This therefore calls for more reforms that will ensure that the systems work well for the global economy.

To maintain stable exchange rates on a global scale, there is need to adopt a good system of fixed exchange rates. This is because many nations have fixed the value of their currencies in relation to the US dollar. Wholesomely, the current world and economies have seen turbulent and huge flows of capital. This is a result of international monetary systems. There are global liquidity problems that need to be reviewed for enhanced global sustainability. This is evident from the way IMF has boosted global liquidity by issuing $284 million in additional SDRs (Copeland, 2009, p. 6).

Conclusion

There is an increased demand for the USD as a result of the global trade which has continued to grow. As much as this demand has continued to surge, it has not caused the value of the currency to depreciate or re-adjust itself in any given case. The continued over reliance on the USD can have a number of global consequences as it was recently evident during the global economic crisis.

Reference List

Cohen, B. 2006. The Future of Money. New Jersey: Princeton University Press.

Copeland, L. 2009. Exchange Rates and International Finance. New Jersey: Prentice Hall.

Evans-Pritchard, A. 2007. China threatens nuclear option of dollar sales. London: The Daily Telegraph.

Goodman, P, S. 2005. China Ends Fixed-Rate Currency. Washington: Washington Post.

Helleiner, E. 1996. Bretton Woods and the Endorsement of Capital Controls: States and the reemergence of global finance. New York: Cornell University Press.

Ravenhill, J. 2005. Global Political Economy. UK: Oxford University Press.

Suranovic, S. 2008. International Finance Theory and Policy. Hampshire: Palgrave Macmillan.

Secured bonds enable bondholders to demand collateral even when a company goes bankrupt. Such bonds are commonly collateralized by equipment or real estate. Since J&J Air is an airline company, this means that it possesses both equipment and property and, hence, its bonds have collateral (Chaney, Sraer, & Thesmar, 2012). The advantage of secured bonds is that they are more likely to be purchased. Besides, this means that J&J Airs bonds have a high rate of seniority. The fact that the bonds are secured and marked with high seniority rates lowers the bonds coupon rate. A sinking fund refers to money that is set aside to pay off the debt. The advantage of a sinking fund is that it protects creditors and attracts investments in the company. Simultaneously, such a fund means for the bondholders a possible loss of money. A call provision increases the coupon rate because it limits bondholders possibilities. When interest rates decline, a call provision enables a borrower to pat off a bond before maturity. But call provision decreases the issue price of the bonds. A deferred call accompanying the call provision provides bondholders with certainty and protection and, thus, lowers the coupon rate. Still, a deferred call prevents a company from returning the bond in advance. A make-whole call provision allows borrowers to repay the debt in advance. This call provision is preferred by investors and is rarely exercised by issuers. Positive covenants reduce the coupon rate by obliging a company to act in favor of its bondholders. J&J Air might consider keeping the audited financial statements. Negative covenants also reduce the coupon rate because they restrict a company from doing actions detrimental to the bondholders. For example, J&J Air could not sell its property and equipment. A conversion feature enhances the security of the bonds and reduces the coupon rate. However, in the case of bankruptcy, convertible bonds also mean risk for the bondholders. Finally, the problem with floating rate coupon is that it brings profit only when interest rates are increasing.

Reference

Chaney, T., Sraer, D., & Thesmar, D. (2012). The collateral channel: How real estate shocks affect corporate investment. American Economic Review, 102(6), 2381-2409.

Finance is the management of money, assets, banking, investments, liabilities, or anything to do with money. It involves the management of money and cash in various sectors of an organization using various instruments and means. Assets, liabilities, bonds, risks, loans, expenses are all measurable in terms of money. Finance is the backbone of any organization and proper financial management will keep organizations running smoothly (Brigham & Ehrhardt, 2011).

Efficient market: This is a market in which new information about shares and securities is reflected very well in terms of prices. Since share or security prices are accurately reflected in the market the expected rate of return can be estimated. As a result, one should not expect an abnormal rate of return (Pandey, 2009)

Primary market: A market in which newly issued securities are first released and sold. Due to that, the first buyer will buy such securities in the primary market from the organization which owns the securities and has released them to the market. Other buyers will buy the securities from the first buyer in secondary markets. (Brigham & Ehrhardt, 2011)

Secondary market: A market where investors buy securities from other investors instead of buying them from the issuing organization. Prices of securities in the secondary market are high. High prices of securities may result in high profits for the sellers. The profits are enjoyed by the sellers at the secondary but not the issuing organizations. (Brigham & Ehrhardt, 2011)

Risk: This is the degree of uncertainty of return of an asset or any other investment according to Pandey (2009). Most organizations employ a variety of risk assessment strategies to determine probable risks before embarking on certain investments to avoid undesirable outcomes or financial loss.

Security: Is a piece of paper that proves ownership of the business, premises, assets, bonds, and other investments. Concerning finance, securities are very important as they provide a guarantee for organizations to get loans from banks and other financing institutions (Brigham & Ehrhardt, 2011).

Stock: Stock refers to the total earnings and assets of any business at any given moment. The more stock a company has the more dividends the company will get as long as the demand for the stock stays constant (Brigham & Ehrhardt, 2011)

Bond: A promissory note issued by the government, companies, or other financial institutions for a given period (Wei, 2005). By selling bonds, governments, and organizations gain money from the public to finance their investments. Repayment of bond is done with some interest.

Capital: Capital is the money invested in a business. According to Brigham & Ehrhardt (2011) capital refers to the financial resources available for use. High capital stabilizes organizations operations and keeps businesses running smoothly

Debt: This is the money borrowed from an outside source with the promise to pay back after a given period. In most cases, debts are paid back with some interest. New companies and start-up companies get debts from banks and private companies to finance their operations (Pandey, 2009)

Yield: Yield is the profit that an organization gets after selling stock or the interest gained on bonds and debts. Yields increase an organizations income and can be used to increase stock or to set up new businesses (Pandey, 2009)

Rate of return: This is a ratio that is used as a measure of the loss or gain of an investment over a given period. If an investment is found to be profitable, then more money can be channeled into such an investment to boost its output and increase profits as argued by Wei (2005).

Return on investment (ROI): A ratio used to compare the efficiency of various investments or to evaluate the efficiency of a given investment after a given period. Return of investment is determined by expressing income from an investment as a proportion of the cost of the investment (Brigham & Ehrhardt, 2011).

Cash flow: This is a term used to represent a companys earnings before repayment of loans, taxes, expenses, depreciation, and deduction of other non-cash charges. It is sometimes referred to as cash earnings and it indicates a companys ability to pay dividends or simply it indicates companys financial strength (Pandey, 2009)

References

Brigham, E.F., & Ehrhardt, M, C. (2011). Financial Management: Theory and Practice.13^th Edition. South Western Cengage Learning.

Pandey, I.M. (2009). Financial Management. 9^th Edition. Vikas Publishing House PVT Ltd. Jangpura, New Delhi

Wei, J.Z. (2005). A laymans Guide to Financial Terms. University of Toronto. Web.