ECO 202 MOD 3 CA Essay Example | Topics and Well Written Essays - 1000 words - 1

ECO 202 MOD 3 CA - Essay Example Q3..For the past 3 years a major department store chain has averaged approximately $10 billion in long-term debt. Their debt is in the form of bonds that have been sold to investment funds and the public (If you are not sure what a corporate bond is look it up on the internet). For the sake of argument, let us assume that either now or one-year from now they will add an additional $5 billion to finance store expansion. This is a given, management has already made this expansion decision and it does not need to be commented on. The objective of management is to issue bonds at the lowest interest rate. Given this objective, should they issue the bonds now or wait for one year if they feel the Federal Reserve will follow:   1. The Federal Reserve policy makers use monetary policy to influence demand and supply of money. Changes in demand and supply of money cause interest rates to fluctuate as illustrated in the below diagrams: The  Federal Reserve  can set the  discount rate, as well as achieve the desired  federal funds rate  by  open market operations. These rates have significant effect on other market interest rates, but there is no perfect relationship. In the United States open market operations are a relatively small part of the total volume in the bond market(monetary policy,Wikipedia,2011) Federal Reserve uses expansionary monetary policy to boost up economics activity in the economy and remove recessionary gap. An increase in the nominal money supply or a decrease in the demand for money results in excess supply of money. This change attempts to reduce money holdings by buying bonds and results in a fall if interest rates .Decrease in interest rate results in an increase in interest-sensitive expenditure and hence there is an increase in equilibrium real National Income. Opposite of expansionary policy is the Contractionary policy which is aimed to remove inflationary gap. A decrease in money supply or a n

Critical analysis of SECI Model of knowledge creation Essay

Critical analysis of SECI Model of knowledge creation - Essay Example Along with that, different types of strategies practiced by the team members to manage knowledge both within and outside the organization departments. Knowledge creation and sharing is essential for success in any organizational growth and development. Many organizations are now managing knowledge in innovative ways to increase productivity (Nonaka, 1990). As proposed by Nonaka and Takeuchi, the SECI model is an exclusively influential model in the management of knowledge in communities and organization, just like its inventors constantly claim of its collective legitimacy. On the other hand, some contemporary literatures defy their judgment. This paper aims to critically analyse the effectiveness of the SECI Model of knowledge creation while continuing the discussion and exploring the limits of its applicability. Ikujiro Nonaka has been a great contributor to the SECI model of knowledge creation. He explained the various concepts of knowledge, both explicit and tacit. He focused on the way many western firms relied on the explicit knowledge concept. He partnered with Takeuchi and together they developed a SECI model that would go on to be an important aspect of knowledge creation. Initially, Nonaka (1994) proposed a two dimensional theory referring to creating knowledge. The establishment of social interaction became the first or epistemological dimension between tacit and explicit knowledge. In this case, individuals convert the original knowledge into various types, hence coming up with new knowledge. Conclusively, the author identified four different types of converting knowledge (Figure 1). These take account of Socialization, Externalization, Combination, and Internalization, which describes tacit to tacit; tacit to explicit; explicit to explicit, and explicit to tacit knowledge convers ion respectively. However, the