Models of cultural differences Essay

There are several different theories and models of cultural differences. Let us detect key dimensions that characterise different cultures. The work of Hall, Hofstede, Trompenaars and many others who study national cross-cultural differences has been invaluable in the area of cross-cultural studies. Edward Hall is a prominent cultural anthropologist. His theoretical framework includes a concept known as the context of culture or communication. Basically Hall argued that there is a continuum extending from a low to high degree of intense socialization within cultural groups. Hall introduces five dimensions as follows: 1. Space: Different cultures have different attitudes towards space. Social distance varies by culture. He revealed that there are different spatial zones that cultures will use for communication. For example among those of Anglo-Saxon heritage, in the United States, there is an intimate zone that extends from 0 to 18 inches from a person. Only close relations will communicate this closely. However, some cultures prefer much closer contact. For example, in many Arab cultures contact is so close that individuals frequently can smell the breaths and odours. 2. Material Goods: Such goods are used for power and status. 3. Friendship: Interpersonal relationships vary considerably across cultures. 4. Time: Linear time cultures take time and deadlines very seriously, in a very rationalist sense. Time is structured, sequential and linear. Hall distinguished between monochronic and polychronic time. Monochronic people and cultures prefer focusing on a single task at a time, and completing one task before beginning another. Polychronic cultures have the ability to focus on multiple priorities simultaneously. 5. Agreement: Expressing agreement and disagreement varies by culture. In some cultures the detailed written contract is essential to agreement, while in others a handshake is sufficient. An interesting study highlighting cultural orientations toward time was completed by Trompenaars. The point of that study was to determine time orientation of different cultures. This national study on time orientation revealed that countries such as Germany and the United States were primarily present and future oriented. Conversely, France was found to be much more focused on the past. Trompenaars develops his parameters of national cultures in such pair oppositions: 1. Universalism – Particularism: The universalist approach means that what is good and right applies everywhere, while the particularist emphasises the obligations of relationships. 2. Collectivism – Individualism: that indicates the relative closeness of the relationship between social group members. 3. Neutral – Emotional: Some cultures are affective in that they show emotions while others are neutral, control and subdue their emotions. 4. Specific – Diffuse: In specific oriented cultures the manager separates the work relationships with subordinates from other dealings with them. 5. Status: While some cultures give status on the basis of achievement, others ascribe it on the basis of age, class, gender, education, etc. 6. Sequential – Synchronic: In the former cultures time is treated as a sequence of events while on later cultures a number of events are juggled at the same time. 7. Inner-Directed – Outer-Directed: The former cultures believe that they can and should control nature while the later go along with nature. Hofstede (1991) defines culture as mental programming or the software of the mind. Hofstede identifies five national culture dimensions as follows (Hofstede, 1980), (Hofstede, 1991): 1. Power Distance that is the extent to which the less powerful members of institutions and organisations within a country expect and accept that power is distributed unequally. 2. Individualism-Collectivism that indicates the relative closeness of the relationship between team members. 3. Masculinity-Femininity that identifies the sexuality of roles in society and the degree to which a society allows overlap between the roles of men and women. 4. Uncertainty Avoidance that is the extent to which the members of a culture feel threatened by uncertain or unknown situations. 5. Long-term Orientation that is based on values of Confucianism showing to what degree do people value the future versus the past or present. The advantages of Hofstede’s dimensions include the fact that they are founded on outstanding psychological and sociological theories within the American and European traditions that are over 100 years old; they are empirically derived; they allow us to rank order nations on each dimension; and they are readily understandable by managers and students. While Hofstede’s dimensions provide an effective general approach for comparing the cultures of nations, they are not grounded to specific nations. His dimensions are designed to be culture-general rather than culture-specific. Moreover, Hofstede results are often hard to remember and difficult to use in daily cultural interactions. All of the above models are quite useful and have several strengths. However there are also some points of concern; some weakness that should be identified with respect to each model separately. Hall’s model is built on qualitative insights rather than quantitative data and does not rank different countries. Hofstede’s work has such main problems like it assumes that national territory corresponds to culture limits, omitting existing cultural non-uniformity in various countries included in the survey, or some of the dimensions effects overlap such as the small power distance characteristics with the feminine ones. For Trompenaars’ model the main problem is that the pool of informants is vaguely defined and lacks homogeneity, therefore the comparisons that are made between cultures are imprecise. References: Hall, E. T. & Hall, M. R. 1990 Understanding Cultural Differences, Intercultural Press. Hofstede, G. 1980 Cultures Consequences, Sage. Hofstede, G. 1991 Cultures and Organisations, McGraw-Hill. Trompenaars, F. 1993 Riding the Waves of Culture, Nicholas Brealey.

Buying Happiness: The Depressing Reality of Materialism, written by Peter Dobson

In the article â€Å" Buying Happiness: The Depressing Reality of Materialism, written by Peter Dobson, he analyses the causes of depression as well as the potential cure. Dodson makes clear what he believes to be the root of depression for people in society. Dodson’s arguments are clear throughout his article and with the statistical data used, it seems to be the best possible to strengthen. His article is not specific to any one group of people but actually to everyone who is a consumer. Dodson is very persuasive in his argument and he is successful at dong so because of his supporting evidence. It is made easy for the readers to understand and relate to his arguments. Dodson’s argues that one of the major reasons many are depressed is due to the many activities people participate in that actually does not result in much emotional, physical or mental benefit. Dobson was persuasive in this argument because many can relate to the experience of feeling empty even after participating in a number if activities. This is because there are always new things to buy, new sites to surf which can only hold out attention for so long and keep us excited or happy for even less. Those who consume themselves in these activities frequently tend to be more materialistic, who replace the void of happiness with many useless things. Dodson is quite persuasive when he analyses this because he references the feelings that a person may encounter as well as the effect it has on the relationships with others around them and the world they now feel secluded in. Dodson makes his readers think about their own experiences, which many will be able to relate to his arguments. Dodson gets in to the minds of his reader’s by analyzing what people do compared to what they should be doing. He is successfully persuasive in how he presents his arguments because the reader’s may already know that with lack of interaction and socialization comes the feeling of depression. Dodson observes trends in Canadians and uses statistical data published by the Washington post in 2006 to help argue that Americans spend less time with their families and more time at work. Dodson’s argument is persuasive once again. He makes a strong correlation between working and the time spent with family. Less time with family equals more time eating along and less human contact, which is needed for the growth of humans and maintaining mental health. Less time with family can leas to depression because more time is taken consumed in work you would rather not do. Dodson is persuasive because he takes a sensitive topic such as family and he breaks it down to show how family is one of the strongest and significant structure needed in anyone’s life. He proves that without much of a family structure or the necessary time spent with family, people tend to feel more isolated and less supported. Dobson makes clear that without one another, especially those who mean a lot to you then we don’t have much to build happiness from. With all the trends and repetitive behavior Dodson put into perspective, the readers are easily persuaded to believe that we as people and as a society are moving down a path with a dead end. We tend to assume that those with high standards of living should automatically be happy. Dodson makes clear with facts that material goods can only allow people to live comfortably but in no way does this guarantee happiness. Dodson is persuasive because he states facts that are easily agreed with. People in society can understand what it takes to be happy and understand that having wealth and material things can possibly harm us rather than do us any good because it simply doesn’t fulfill our deepest desires. It actually suppresses it causing more of a void and desire to be happy. Having to buy the latest fashion and keep up with trends while losing more sleep can all lead to stress. The thought alone is tiresome. This is what Dodson tries to get his readers to understand and relate to. He paints a picture to his readers about how easy it is for these activities to lead to lowered self esteem and reduced sense of well being, which is nothing close to rewarding. This alone is a huge trigger for depression. Dodson uses his own analysis and it is successfully used to persuade his readers that there is a certain lifestyle to be lived by for regular people. He makes clear on what leads to depression and what we should be doing to cure this illness. The supporting evidence used helps the readers to understand the point of view and put themselves in relatable situations. Dodson persuades his readers that we are not on the correct path and are actually steered away from what the true meaning of happiness is. Dodson Summary In the article â€Å"Buying Happiness: The Depressing Reality Of Materialism†, by Peter Dodson, he analyses the causes of depression in society as well as potential cures. He argues that society is on a dead path to happiness and that levels of depression are actually at all time high. Money buys happiness† is one of the notions our society abides by which is actually hindering and the leading cause of depression. We are nowhere near happiness because we are misguided by what we believe true happiness to be. The author addresses the issues and correlation between money and material goods. He addresses the assumption that people who have high standards of living are believed to be happy, which is fal se. Money and material goods only provide a comfortable lifestyle but in no way does it guarantee happiness. Studies have actually shown that in addiction to this, intense pursuit of wealth and material goods can actually lead a person to become ill. Dodson argues that people are more prone to depression when they embrace materialism. Materialistic people tend to participate in activities, which actually provide them with no physical, mental or emotional benefits. They are only provided with short-term satisfaction but nothing to truly fulfill their deepest desires. Engaging in these activities also leads to lack of social interaction and doing things that are better for their well being. Dodson also addresses the fact that more people are working more thus leading to less time spent with family, which is an important part of growth. We require interaction with others and the less this is being done the more depressed people become. More time is spent doing activities alone such as: eating, watching tv and none to discuss personal problems with. With the many different trends Dodson proves how we are moving in the wrong direction and need to change a lot of our activities and mindset in order to move away from depression and towards happiness.

The forgotten group memeber case Essay Example

The forgotten group memeber case Essay Example The forgotten group memeber case Essay The forgotten group memeber case Essay Essay Topic: Sociology The facilitator, Christine, is assumed to embrace the same roles and adhere to the equivalent theories defined for a leader. Also, it is believed that the principles taught within Professor Rasmussens Organizational Behaviour class are consistent with those discussed by Dr. Keeping. The outcomes associated with the alternative solutions are based upon the likelihood of their interpretations within the group meeting corresponding with our interpretations of the theories utilized and are not explicitly applied with certainty. Statement of the Problem Due to lack of: clearly defined team roles, demonstrated leadership qualities, effort by all members and acknowledgment of communication barriers, conflict was imminent within the group. Immediate problems to be addressed by all members of the group include Janets feelings of exclusion from the group and Christines lack of insight into the apparent causes of Janets loss of motivation to be a group member. Professor Rasmussen must decide whether to resolve the feelings of inequality between the group members and if delegating a further assignment to Janet is appropriate. Analysis of the Problem As stated in the course outline received by all students at the commencement of the term, group work is considered to be the primary medium through which applying the theories learned in class is to be implemented. Causes of animosity within the group may be attributed to group dynamics, norm formation, leadership inefficiencies, perceptions, conscientiousness and communication barriers. As explained by Professor Rasmussen during the second class, all groups undergo four stages of interaction: forming, norming, storming and performing1. These four phases are also referred to as mutual acceptance, communication and decision making, motivation and productivity and control and organization. Interaction amongst those who have had no previous relations together is facilitated through the first stage; where personal preferences and work schedules are exchanged, strengths and weaknesses made apparent and expectations clarified2. The first group meeting held was used to recognize these necessities. The second stage, where norms, goals and performance ideals are mutually established through discussion, should not occur without careful consideration and input by all members. The formation of the group failed to fully complete this stage however, allowing the ambiguous actions of members to be perceived incongruently. Norms are behaviours that social groups deem proper when interacting, so that actions may be consistent and activities made predictable3. To be effective, all must clearly understand and adhere to these expectations for there to be cohesiveness. At the commencement of the semester, Professor Rasmussen defined his norms for the groups and required all students to sign a contract, indicating that all expectations have been acknowledged. Unfortunately, within Christines group, not all members abided by the norms. One member in particular, Janet, failed to fulfill the contract to its fullest extent, however, one should not fault the lack of cohesiveness strictly to Janet. The group accepted the norms delivered by Professor Rasmussen but did not redefine or set out norms to be suitable for them selves. Nor was the contract or its contents reviewed during the group meetings. Therefore, it may be inferred that the group failed to establish strict rules or guidelines, causing the situation they are presently in. Christine, as facilitator, should have ensured that the norms were set as they are a vital aspect of a successful group4. Christines style of leadership throughout this situation may be described using the theory of Leader-Member Exchange. This theory focuses upon the unique relations between a leader and their subordinates. Greater personality similarities contribute to closer relations, allowing for stronger bonds to be forged5. These strong personality connections cause the subordinate to be designated a member of the ingroup. The ingroup consists of those who receive special preferences such as inclusion within social activities that occur outside of the organization. Those subordinates who do not receive this special treatment are considered the outgroup members. As facilitator, Christine did not form a strong inter-personal relationship with Janet, her subordinate. As sole member of the outgroup, Janet did not satisfy the need to relate to her colleagues as defined by ERG; a theory first proposed by Clayton Alderfer that defines the needs of existence, relatedness and growth as essential to human motivation. The need of relatedness is the ability to identify with ones peers and establishing a sense of belongingness6. Janet was not able to experience the cohesiveness established through the extracurricular social interactions. The rest of the members were able to receive these benefits and become highly cohesive due to their designated statuses as members of the ingroup. Because Janet was excluded from the ingroup and was allocated to the outgroup, she was lead to encompass unmotivated behaviours. She was lead to feel unmotivated, as she was a victim of the fundamental attribution error principle. This theory states that one may have their preferences and ideals seen as the primary cause of their actions although situational attributions may be the proper cause7. Janet experienced this bias by the members of her group, as she chose to help her boyfriend with his project instead of meeting with the group at the designated time, as she previously agreed to. From her perspective, she did not intentionally choose to spend the allotted time with her boyfriend, however the group feels that her actions were a blatant attempt to avoid contributing further. This principle was also used by Janet, as she attributed Christines lack of social inclusion to the general dislike of her personality. Due to the diverse personality composition of the group, it is imperative that the leader manages the situation with care to ensure that conflicting ideals do not affect the groups cohesiveness. Stereotypes attributed amongst the members of the group lead to distrust as well as communication problems. A leader must recognize these issues and allocate the required time towards helping the group unify8. When Christine first met with her group, she made stereotypical assumptions about each individual based upon her first impressions and the brief biographies supplied to her. One may describe representativeness heuristics as a method in which a person evaluates others based on characteristics or previous occurrences9. Christine utilizes this principle when she assumes that Janet is unmotivated and uninterested with the group project; as she was late to the first meeting and mentioned all her free time was spent with her boyfriend. This causes the group to feel as though Janet does not want to work with them, which leads her to feel unwelcome. Although Janet has contributed her allotted portion of the assignment, Christine still holds negative feelings due to selective perception10; the ability to omit information, which does not correspond to, established beliefs. Despite the fact that Janet was a fully contributing member, the group continued to hold a negative bias due to her lack of social activity. Also, Mike had the tendency to put forth less effort than other group members, which is looked upon as free riding. A free rider is one who tries to maximize their outputs while minimizing their level of inputs11. Due to his lack of focus and recurring need to bring humour to all situations, Mike is seen as a fully contributing member because of his constant presence. Christines lack of leadership contributed to the differing ways in which each individual was treated, causing the group to have a lack of respect for her position. A persons conscientiousness defines the range of tasks they wish to sustain and the variety of activities in which they chose to involve themselves. A person who appears to focus on effectively completing a small number of goals is viewed as displaying high-conscientiousness. They value the characteristics being responsible, organized and self-disciplined. Anchored at the opposing end of the continuum are those whom are regarded as exhibiting low-conscientiousness. They apply themselves to a large number of responsibilities that often cause them to become overwhelmed by the volume and incapable of applying the effort required. People within this category tend to be careless, irresponsible and lack self-sufficiency12. In applying this theory to the case, it is apparent that Janet tends demonstrate characteristics consistent with a less-conscientious person. She is studying at a university, maintaining two jobs and is fully committed to a serious relationship. Therefore, Janets time is greatly consumed with a larger variety of activities than others within her peer group. This detracts from her performance in the group-case study. Communication is an essential element for coordinating efforts and sharing information within any interpersonal atmosphere13. Barriers to communication arose concerning Mikes free- riding tendencies and Janets failure to attend group meetings regularly due to Christines failure to fulfill the role of facilitator. Instead of avoiding the conflict, Christine should have resolved the issues as they became apparent, for they caused stronger concentration upon Janets individualized status.

The like of shakespeare essays

The like of shakespeare essays His father, John, trained as a glove-maker and married Mary Arden, the daughter of Robert Arden, a farmer from the nearby village of Wilmcote. John and Mary moved to Henley Street, Stratford, the house now known as Shakespeare's Birthplace. John Shakespeare was a good citizen, he was on the town council for many years and he became Bailiff, or Mayor, in 1568. Besides being a glover, he traded as a wool dealer and was also involved in money-lending. John and Mary lost two children before William was born. They had five more children,but another one died young. Because William was the son of a leading townsman, it was very likely he went to Stratford's 'petty' or junior school before moving on, maybe at the age of seven, to the Grammar School, which is still around today. The grammar school taught Latin, both written and spoken. In November 1582 he married Anne Hathaway, the daughter of Richard Hathaway, a local farmer. Her home, now known as Anne Hathaway's Cottage, still stands in the village of Shottery, a mile from Stratford. At the time of their marriage William was eighteen and Anne was twenty-six. Their first-born child, Susanna, was baptised on 26 May 1583. Two years later twins followed, Hamlet and Judith. Shakespeare's reputation was established in London by 1592. Shakespeare's earliest plays included the three parts of Henry VI, The Two Gentlemen of Verona, and Titus Andronicus. Shakespeare's first printed works were two long poems, Venus and Adonis (1593) and The Rape of Lucrece (1594). These were both dedicated to the Earl of Southampton. Most of the Sonnets were probably written about this time, too, although they were not published until 1609. 1n 1594, Shakespeare joined others in forming a new theatre company, with Richard Burbage as its leading actor. For almost twenty years Shakespeare was its regular dramatist, producing on average two plays a year. Burbage played roles such as Richard III, Hamlet, Oth...

Prehistoric Life During the Pliocene Epoch

Prehistoric Life During the Pliocene Epoch By the standards of deep time, the Pliocene epoch was relatively recent, commencing only five million years or so before the start of the modern historical record, 10,000 years ago. During the Pliocene, prehistoric life around the globe continued to adapt to the prevailing climatic cooling trend, with some notable local extinctions and disappearances. The Pliocene was the second epoch of the Neogene Period (23-2.6 million years ago), the first being the Miocene (23-5 million years ago); all of these periods and epochs were themselves part of the Cenozoic Era (65 million years ago to the present). Climate and Geography During the Pliocene epoch, the earth continued its cooling trend from previous epochs, with tropical conditions holding at the equator (as they do today) and more pronounced seasonal changes at higher and lower latitudes; still, average global temperatures were 7 or 8 degrees (Fahrenheit) higher than they are today. The major geographic developments were the reappearance of the Alaskan land bridge between Eurasia and North America, after millions of years of submersion, and the formation of the Central American Isthmus joining North and South America. Not only did these developments allow an interchange of fauna between three of the earths continents, but they had a profound effect on ocean currents, as the relatively cool Atlantic ocean was cut off from the much warmer Pacific. Terrestrial Life During the Pliocene Epoch Mammals. During large chunks of the Pliocene epoch, Eurasia, North America, and South America were all connected by narrow land bridges- and it wasnt all that difficult for animals to migrate between Africa and Eurasia, either. This wreaked havoc on mammalian ecosystems, which were invaded by migrating species, resulting in increased competition, displacement, and even outright extinction. For example, ancestral camels (like the huge Titanotylopus) migrated from North America to Asia, while the fossils of giant prehistoric bears like Agriotherium have been discovered in Eurasia, North America, and Africa. Apes and hominids were mostly restricted to Africa (where they originated), though there were scattered communities in Eurasia and North America. The most dramatic evolutionary event of the Pliocene epoch was the appearance of a land bridge between North and South America. Previously, South America had been much like modern Australia, a giant, isolated continent populated by a variety of strange mammals, including giant marsupials. Confusingly, some animals had already succeeded in traversing these two continents, before the Pliocene epoch, by the arduously slow process of accidental  island-hopping; thats how Megalonyx, the Giant Ground Sloth, wound up in North America. The ultimate winners in this Great American Interchange were the mammals of North America, which either wiped out or greatly diminished their southern relatives. The late Pliocene epoch was also when some familiar megafauna mammals appeared on the scene, including the Woolly Mammoth in Eurasia and North America, Smilodon (the Saber-Toothed Tiger) in North and South America, and Megatherium (the Giant Sloth) and Glyptodon (a gigantic, armored armadillo) in South America. These plus-sized beasts persisted into the ensuing Pleistocene epoch, when they went extinct due to climate change and competition with (combined with hunting by) modern humans. Birds. The Pliocene epoch marked the swan song of the phorusrhacids, or terror birds, as well as the other large, flightless, predatory birds of South America, which resembled meat-eating dinosaurs that had gone extinct tens of millions of years earlier (and count as an example of convergent evolution.) One of the last surviving terror birds, the 300-pound Titanis, actually managed to traverse the Central American isthmus and populate southeastern North America; however, this didnt save it from going extinct by the start of the Pleistocene epoch. Reptiles. Crocodiles, snakes, lizards, and turtles all occupied an evolutionary backseat during the Pliocene epoch (as they did during much of the Cenozoic Era). The most important developments were the disappearance of alligators and crocodiles from Europe (which had now become much too cool to support these reptiles  cold-blooded lifestyles), and the appearance of some truly gigantic turtles, such as the aptly named Stupendemys of South America. Marine Life During the Pliocene Epoch As during the preceding Miocene, the seas of the Pliocene epoch were dominated by the biggest shark that ever lived,  the 50-ton Megalodon. Whales continued their evolutionary progress, approximating the forms familiar in modern times, and pinnipeds (seals, walruses, and sea otters) flourished in various parts of the globe. An interesting side note: the marine reptiles of the Mesozoic Era known as  pliosaurs  were once thought to date from the Pliocene epoch, hence their misleading name, Greek for Pliocene lizards. Plant Life During the Pliocene Epoch There werent any wild bursts of innovation in Pliocene plant life; rather, this epoch continued the trends seen during the preceding Oligocene and Miocene epochs: the gradual confinement of jungles and rain forests to equatorial regions, while vast deciduous forests and grasslands dominated higher northern latitudes, especially in North America and Eurasia.

Satan's fall from Heaven Research Paper Example | Topics and Well Written Essays - 3000 words

Satan's fall from Heaven - Research Paper Example Main views/theories on Satan's fall from Heaven The exact time of Satan's fall from Heaven is still clouded and leads to a number of different views and theories on the same. Some of the views/theories are pointed out here. Satan’s fall: between Genesis 1:1 and 1:2 This view/theory is generally known as ‘gap theory’. The chief exponents of this theory believe that the wide time interval between Genesis 1:1 and 1:2 is enough to the Satan’s fall from heaven. Hodge (2011), states that â€Å"Gap theorists try to make the case that the Hebrew in Genesis 1:2 should be translated as â€Å"And the earth became without form, and void† and this is subsequent to Satan’s fall† (p.24). Besides, this theory can be connected to the theory of evolution and the extinction of dinosaurs. When the gap is that of millions of years, there exists high possibility for Satan’s fall from heaven within this time interval. In addition, this theory tries to connect Genesis 1:1 with scientific division of ages. For instance, Genesis 1:1can be evaluated scientifically as the time interval of creation of the whole world by the God. Moreover, Genesis 1:2 can be evaluated as the time interval in which the God judged the whole wor ld. In short, the ‘gap theory’ tries to explain that Satan’s fall from the heaven is in between Genesis 1:1and 1:2. Satan’s fall: between chapters 1 and 2 (Genesis)... Satan’s fall: between chapters 1 and 2 (Genesis) The people who believe in this view/theory do not accept the fact that the earth’s age consists of millions of years. When this view is connected to the God’s creation of the world within six days, the time interval for the creation is limited to an extent. For instance, when the God created the whole world within six days, the age of the earth will be limited to thousands of years. Russell (1987), states that â€Å"The Devil fall from grace because he envied God, wishing to be adored like his maker, and even more because he envied humanity† (p.81). The exponents of this view/theory argue that Satan was created by the God on the first day of creation. Those who believe in this view/theory are of the opinion that Satan’s fall is in between the chapters 1 and 2 (Genesis). To be specific, the Satan in the chapter 3 of genesis is portrayed as a fallen angel. So, there exists high possibility for Satanâ₠¬â„¢s fall between his creation (chapter 1) and portrayal as fallen (chapter 3). So, the exponents of this view/theory argue that Satan’s fall is in between the chapters 1 and 2 (Genesis). Satan’s fall: before chapter 1 (Genesis) This view/theory is based upon the belief that Satan’s fall is not between Genesis 1:1 and 1:2, and chapters 1 and 2 (Genesis), but before chapter 1 (Genesis). This view/theory suggests that Satan was banished from the heaven long before Adam and Eve’s creation. Troyer (2007), states that â€Å" Some people believe Lucifer was kicked out of heaven long before the Garden of Eden was made or before God created the heaven and the earth† (p.116). The main argument is that chapter 1 (Genesis) makes clear that

Australia's Economy Over The Last Two Years Essay

Australia's Economy Over The Last Two Years - Essay Example In Australia, the Australian government and the Reserve Bank of Australia play a major role in the country’s economics, as these determine the macroeconomic policies in the country. According to the International Labour Organization (2013), a microeconomic policy that is aimed at achieving economic stability in a country, is a paramount condition for the achievement and sustenance of high levels of development tin a country. Nonetheless, this part of the essay explores the main macroeconomic policies used by the Australian Government and the Reserve Bank of Australia over the last two years. There are two core macroeconomic policies, which a country can use, and these include the monetary and the fiscal policy. Nonetheless, the Australian government and the Reserve Bank of Australia have in the past two years, used these to control the economy. Fiscal policy in Australia includes the level and composition of government revenues and outlays, methods of financing a budget defici t or using a budget surplus, the operation of automatic and discretionary stabilizers, and the provision of incentives to increase aggregate supply. According to Parkinson (2012), a major function of Australia’s fiscal policy is to ensure the maintenance of fiscal sustainability from a medium-term perspective. Parkinson (2012) also notes that monetary policy in Australia has the main purpose of maintaining inflation between 2 and 3 percent. The monetary policy in Australia has to do with the Reserve Bank of Australia interest rate, as well as the exchange rate policies, and transmission mechanisms. This serves to anchor inflation expectations, and has the responsibility of managing demand. This is with the aim of ensuring that the country’s economy remains on a stable path of growth, and maintains a low rate of inflation. Therefore, monetary policy and fiscal policy, as well as exchange rate, are three core aspects of Australia’s macroeconomic framework, which h ave been extremely important for the past two years, as these have provided a great level of flexibility for the country to deal with economic shocks that it experiences from time to time. Parkinson (2012) notes that the Australian macroeconomic policy framework is an asset and an endowment to the country, as it forms a core part of the country’s productive base. Nonetheless, for the past two years, these have been effective in ensuring that Australia addresses its economic problems, and the Australian government achieves its economic objectives. The Reserve Bank of Australia deals with all the issues pertaining the monetary policy. Nonetheless, a major aspect of the monetary policy, which the Reserve Bank of Australia utilizes is the interest rate. This interest rate influences differently other interest rates in the economy, so that the borrowers and lenders in the money markets come under the influence of the monetary policy. The Reserve Bank of Australia controls the inte rest rates in a manner that will ensure that the objectives of the Reserve Bank Act 1959 are attained. These include, and are not limited to ensuring a stable currency of the country, preventing unemployment, boosting living standards of citizens, and ensuring economic empowerment of the people (Reserve Bank of Australia 2013). In order to ease or loosen bonds, the Reserve Bank of Australia would buy bonds in order to create excess liquidity, putting downward pressure on interest rates, allowing increased consumer and investment spending, and finally lower the rate of unemployment. Similarly, when there is a possibility of the rate of inflation to increase, the Reserve Bank